(i)On 1^st September 2015, Motiwala Corporation issued 9% Bonds Payable for Rs. 10,000,000 at 5% discount. Six-monthly interest is payable on 1^stMarch and 1^st September. Bonds Payable will mature after 10 years i.e.on 1^st September 2025.

Pass journal entries:

1 Sep 2015 Issue of 9% Bonds Payable at 5% discount.

31 Dec 2015Accrual of interest and discount amortization.

1 Mar 2016Payment of bi-annual interest and discount amortization.

1 Sep 2016Payment of bi-annual interest and discount amortization.

31 Dec 2016Accrual of interest and discount amortization.

1 Mar 2017Payment of bi-annual interest and discount amortization.

(ii)What are the factors determining difference between market value of bond payable and par value

(issue price) of bond payable?