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On 1st May, 2016, Goodluck Ltd. issued 16,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% redeemable after five years. All the debentures were subscribed and allotment was made. Discount on issue of Debentures is to be written off over the life of the debentures. Prepare the Balance Sheet (extract) as at 31st March, 2017 showing Discount on issue of Debentures.

Answer»

On 1st May, 2016, Goodluck Ltd. ISSUED 16,000, 9% Debentures of ₹ 100 each at a discount of 10% redeemable at a PREMIUM of 10% redeemable after five years. All the debentures were subscribed and allotment was made. Discount on ISSUE of Debentures is to be written off over the life of the debentures.Prepare the Balance Sheet (extract) as at 31st MARCH, 2017 showing Discount on issue of Debentures. I will be there at your question contact me if any query



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