Question : On 1st April, 2014, a Limited Company issued debentures of the face value of Rs. 5,00,000 at a discount of 6%. The debentures were repayable in 5 years by annual drawings of Rs. 1,00,000 made on 31st March each year.
Question:- Amount of discount to be written off at the end of 5th year
Option 1: Rs 2,000
Option 2: Rs 1,600
Option 3: Rs 1,200
Option 4: Rs 400
Answer (1)
25th Jan, 2024
Correct Answer: Rs 400
Solution : Answer = Rs 400
| Year | Amount Outstanding | Ratio | Discount (written–off) |
| MARCH 31, 2015 | 5,00,000 | 5 | 5/15X6000= 2000 |
| MARCH 31 2016 | 4,00,000 | 4 | 4/15X6000=1600 |
| March 31, 2017 | 3,00,000 | 3 | 3/15X6000= 1200 |
| March 31, 2018 | 2,00,000 | 2 | 2/15X6000= 800 |
| March 312019 | 1,00,000 | 1 | 1/15X6000=400 |
Hence, the correct option is 4.
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