Instructions for Q no 6 a and b

Sitara co. Issued Rs. 400000 5% debebntures on 1st January 2020. The market rate of interest applicable on this date was 16% p.a . Identify the interest to be written of to the profit and loss account in the year ended 31 Dec 2021 and the amount at which debebntures should be reported on the balance sheet as at the same date, in each of the situations stated below:

The debentures issued at par and redeemable at 50% premium on 31 Dec 2023. expenses directly accured in the issue of debebntures amount to Rs.126612.

(a) find out amount of interest written off.

(b) debebntures in the end will be