MN Ltd., issued 40,000 debentures of 50 each at a discount of 6%. Debentures were to be
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MN Ltd., issued 40,000 debentures of ₹50 each at a discount of 6%. Debentures were to be redeemed at the end of five years. Pass journal entry for the issue and show the amount of discount that should be written off to Profit & Loss A/c each year.
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When a company issues debentures at a discount it typically needs to account for the discount as an expense over the debentures tenure In this case MN ...View the full answer
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