On May 01, 2025, Kaur Ltd. issued 10,000, 8% debentures of Rs. 100 each at a discount of 10% redeemable at a premium of 10%. The issue was fully subscribed and the amount was duly received. Calculate the amount of loss on issue of debentures.
On May 01, 2025, Kaur Ltd. issued 10,000, 8% debentures of Rs. 100 each at a discount of 10% redeemable at a premium of 10%. The issue was fully subscribed and the amount was duly received. Calculate the amount of loss on issue of debentures.
Solution
✅ Correct Option: 2
Loss on issue covers both the discount allowed and the premium payable on redemption. Discount and premium on redemption . Total loss .