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A, Ltd. issued 50,00,000, 8% debentures of Rs. 100 at a discount of 6% on April 01, 2009, redeemable at premium of 4% by draw of lots as under: 20,00,000 debentures on March, 2011 10,00,000 debentures on March, 2013 20,00,000 debentures on March, 2014. 

Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/loss on issue of debenture account.

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Loss on issue of debenture = 6% (discount on issue) + 4% (premium on redemption) = 10%

= 50,000 x 100 x \(\frac{10}{100}\) = 5,00,00,000

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