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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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