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    A Ltd issued 20,000 10% debentures of ₹100 each at a discount of 5% on April 01, 2022, which are redeemable at 10% premium. It has sufficient balance
    Question

    A Ltd issued 20,000 10% debentures of ₹100 each at a discount of 5% on April 01, 2022, which are redeemable at 10% premium. It has sufficient balance of Securities Premium Reserve. Calculate the amount to be written off from Securities Premium Reserve:

    A.

    ₹1,00,000

    B.

    ₹2,00,000

    C.

    ₹3,00,000

    D.

    ₹4,00,000

    Correct option is C

    Amount to be written off from Securities Premium Reserve = (20,000×110)-(20,000×95)=₹3,00,000

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