On 1st April 2012, Z Ltd. issued Rs. 10,00,000, 10% Debentures of Rs. 100 each at 94% redeemable at par. The debentures are to be redeemed by drawings method in the following manner:
Year end |
2nd |
3rd |
4th |
5th |
Nominal value of debentures to be Redeemed |
10% |
20% |
30% |
40% |
Calculate the amount of discount on issue of debentures to be written off each year.