Question

2. A company has issued 12,00,000, 6% debentures at a discount of 6% repayable over a
period of 10 years at par by annual drawings of 1,20,000. Write-up the Cash Book, Debentures
Account and Discount on Debentures Account for the first three years.​

Answer 1

Answer:

Total Discount = ₹72,000

Amount Written off in the 1st Year = ₹13,091

" 2nd Year = ₹11,782

" 3rd Year = ₹10,473

Cashbook Balance = ₹7,68,000

Debentures Account = ₹8,40,000

Discount on Debentures Account = ₹36,654