Multiple choice

Directions: Choose the correct option for the given question:

On 1st April, 2006, Y Ltd. Issued 1, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off in the first year i.e. on 31st March, 2007, through P & L account ?

  1. Rs. 2,000

  2. Rs. 1,800

  3. Rs. 1,200

  4. Rs. 600
Reveal answer Fill a bubble to check yourself
C Correct answer

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