X Ltd. issued 10, 000, 12% debentures of Rs. 100 each at a premium of 10%, which are redeemable after 10 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year =

 The premium received at the time of issue of debentures is to be credited to the securities premim account and the premium which is to be paid at the time of redemtion of debentures is a loss to be provided at the time of issue of debentures and this loss is written off in equal installments during the lifetime of debentures.  Loss on issue of debentures= Rs 2,00,000 Life of debentures                 = 10 Years Loss to be written off every year= 200000/10                                                        = Rs 20,000