Josh Ltd. issued 2,000, 10% debentures of ₹100 each at a discount of 10%. These debentures are redeemable at a premium of 10% after 8 years. You are required to Compute the loss on issue of debentures to be accounted ove

Working Note: Loss on issue of debenture = Discount on issue + Premium on redemption = 20,000 + 20,000 = 40,000 Loss of issue of debenture (₹40,000) is to be written off over a period of 8 years. Therefore, 1/8th of 40,000 i.e. ₹5,000 is to be written off each year.