Rama Ltd. issued 5,000, 8% debentures of ₹1,000/- each at a discount of 5% on April 1, 2020. The debentures are repayable by equal annual drawings in four years. You are required to show the amount of discount to be writ

Repayment Schedule Date Debentures Issued Face Value Outstanding Value at beginning of year Repayment at end of year 01 April 2020 5000 ₹1000/- ₹50,00,000 12,50,000 01 April 2021 37,50,000 12,50,000 01 April 2022 25,00,000 12,50,000 01 April 2023 12,50,000 12,50,000 The total discount on issue of debentures will be written off in proportion to the debentures outstanding at the beginning of each year. Discount on issue ₹50,00,000 5% ₹2,50,000 Outstanding value at beginning of year Proportion Discount to be written off at end of the year 01 April 2020 ₹50,00,000 0.40 ₹1,00,000 01 April 2021 37,50,000 0.30 75,000 01 April 2022 25,00,000 0.20 50,000 01 April 2023 12,50,000 0.10 25,000