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A company issued 30,000, 9% Debenture of ₹100 each at 5% premium. These debentures are to be redeemed at 15% premium at the end of 4 years. Existing B
Question

A company issued 30,000, 9% Debenture of ₹100 each at 5% premium. These debentures are to be redeemed at 15% premium at the end of 4 years. Existing Balance in Securities Premium before Issue of Debentures was ₹80,000. Identify the amount to be debited to Statement of Profit and Loss for writing off Loss on issue of Debentures.

A.

₹4,50,000

B.

₹2,20,000

C.

₹2,25,000

D.

₹3,70,000

Correct option is B

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