Question:medium

Nori Ltd. issued 20,000, 11% debentures of ₹ 100 each at a premium of 10%, redeemable at a premium of 5%. Loss on issue of debentures account will be debited by :

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Loss on Issue of Debentures arises when:
  • Debentures are issued at discount (Discount on Issue)
  • Debentures are redeemable at premium (Premium on Redemption)
Formula: Loss on Issue = (Discount on Issue + Premium on Redemption) × Number of Debentures
  • ₹ 20,00,000
  • ₹ 1,00,000
  • ₹ 3,00,000
  • ₹ 2,00,000
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The Correct Option is B

Solution and Explanation

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