Question

Sun Ltd issues 400, 12% debentures of ₹100 each at a discount of 5%, redeemable at the end of 5 years at

a premium of 2%. The loss on issue of debentures A/c is:​

Answer 1

Answer:

discount = 40,000×5/100= 2000

premium = 40,000×2/100 =800

total loss = 2000+800 = 2800