Question :
R Ltd. issued 10,000, 12% Debentures of Rs. 100 each at a discount of 5%. Discount on issue of debenture account will be ----------. Debenture account credited by --------
Option 1: Debited by Rs 50,000, Debentures credited by 10,00,000
Option 2: Credited by Rs 50,000 debentures account credited by 10,00,000
Option 3: Debited by Rs 50,000 Debentures account credited by Rs 9,50,000
Option 4: None of the above
Correct Answer: Debited by Rs 50,000, Debentures credited by 10,00,000
Solution : Answer = Debited by Rs 50,000, Debentures credited by Rs 10,00,000
Discount on issue of DeBentures = 50,000 Rs
(10000 DeBentures @ Rs 5)
12 % DeBentures = 10,00,000
(10,000 deB @ 100 each)
Hence, the correct option is 1.
