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Win Ltd. issued 20,000, 8% debentures of Rs.10 each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be

Replies (8)

 rs 8000

how?could u explain me?

PREMIUM PAYABLE ON REDEMPTION = 20000 SHARES * RS.10 * 20%

                                                                        = 40000/-

LIFE OF DEBENTURE IS 5 YEARS THEN AMOUNT TO BE WRITTEN OF EACH YEAR WILL BE :=

                                                                   = 40000 / 5

                                                                  = RS.8000/- PER YEAR

Agreed with TEHSIN.....

Originally posted by : Tehsinkhan pathan

PREMIUM PAYABLE ON REDEMPTION = 20000 SHARES * RS.10 * 20%

                                                                        = 40000/-

LIFE OF DEBENTURE IS 5 YEARS THEN AMOUNT TO BE WRITTEN OF EACH YEAR WILL BE :=

                                                                   = 40000 / 5

                                                                  = RS.8000/- PER YEAR

:D

Yes !!!

agree with tehsin and maddy

PREMIUM PAYABLE ON REDEMPTION = 20000 SHARES * RS.10 * 20%

                                                                        = 40000/-

LIFE OF DEBENTURE IS 5 YEARS THEN AMOUNT TO BE WRITTEN OF EACH YEAR WILL BE :=

                                                                   = 40000 / 5

                                                                  = RS.8000/- PER YEAR

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