The following journal entry appears in the books of Latvion Ltd.:
Date Particulars Dr. Amount (₹) Cr. Amount (₹) Bank A/c 4,75,000 Loss on issue of debentures A/c 75,000 To 12% Debentures A/c 5,00,000 To Premium on Redemption of Debentures A/c 50,000
The discount on issue of debentures is:
The following journal entry appears in the books of Latvion Ltd.:
| Date | Particulars | Dr. Amount (₹) | Cr. Amount (₹) |
| Bank A/c | 4,75,000 | ||
| Loss on issue of debentures A/c | 75,000 | ||
| To 12% Debentures A/c | 5,00,000 | ||
| To Premium on Redemption of Debentures A/c | 50,000 |
The discount on issue of debentures is:
Show Hint
- 15%
- 5%
- 10%
- 95%
The Correct Option is A
Solution and Explanation
Amount received in Bank = ₹ 4,75,000
Discount on issue = ₹ 5,00,000 – ₹ 4,75,000 = ₹ 25,000
Percentage of discount = (₹ 25,000 / ₹ 5,00,000) × 100 = 5%
However, note that there’s also a Loss on Issue of Debentures of ₹ 75,000, which includes the discount plus premium payable on redemption. Premium on Redemption = ₹ 50,000
Thus, actual discount = ₹ 75,000 – ₹ 50,000 = ₹ 25,000
Therefore, the discount rate = (₹ 25,000 / ₹ 5,00,000) × 100 = 5%.
Hence, the correct answer is (B) 5%.
Final Answer: 5%
Top Questions on Partnership Accounts
- X, Y, and Z are partners in 2:1:1 ratio. Y retires. Calculate the new ratio.
- JKBOSE XII - 2026
- Accountancy
- Partnership Accounts
- Dissolution of partnership means:
- JKBOSE XII - 2026
- Accountancy
- Partnership Accounts
- The goodwill brought in cash by a new partner is shared by the existing partners in:
- JKBOSE XII - 2026
- Accountancy
- Partnership Accounts
- The maximum number of partners in a partnership firm as per Companies Act, 2013 is:
- JKBOSE XII - 2026
- Accountancy
- Partnership Accounts
- Old ratio of two partners A and B is 5:3, they admit another partner C for 1/4th share. The new ratio among A, B and C is:
- JKBOSE XII - 2026
- Accountancy
- Partnership Accounts
Questions Asked in CBSE CLASS XII exam
- Find the general solution of the differential equation \[ y\log y\,\frac{dx}{dy}+x=\frac{2}{y}. \]
- CBSE CLASS XII - 2026
- Differential Equations
- A square loop of side 0.50 m is placed in a uniform magnetic field of 0.4 T perpendicular to the plane of the loop. The loop is rotated through an angle of 60° in 0.2 s. The value of emf induced in the loop will be:
- CBSE CLASS XII - 2026
- Electromagnetic induction
A racing track is built around an elliptical ground whose equation is given by \[ 9x^2 + 16y^2 = 144 \] The width of the track is \(3\) m as shown. Based on the given information answer the following:
(i) Express \(y\) as a function of \(x\) from the given equation of ellipse.
(ii) Integrate the function obtained in (i) with respect to \(x\).
(iii)(a) Find the area of the region enclosed within the elliptical ground excluding the track using integration.
OR
(iii)(b) Write the coordinates of the points \(P\) and \(Q\) where the outer edge of the track cuts \(x\)-axis and \(y\)-axis in first quadrant and find the area of triangle formed by points \(P,O,Q\).
- CBSE CLASS XII - 2026
- Integration
- Consider a cylindrical conductor of length \( l \) and area of cross-section \( A \). Current \( I \) is maintained in the conductor and electrons drift with velocity \( \vec{v}_d \, (|\vec{v}_d| = \frac{eE}{m} \tau) \), where symbols have their usual meanings. Show that the conductivity of the material of the conductor is given by \[ \sigma = \frac{n e^2 \tau}{m}. \]
- CBSE CLASS XII - 2026
- Current Density
- The painting Hazrat Nizamuddin Auliya and Amir Khusro belongs to which sub-school of Deccan Miniature?
- CBSE CLASS XII - 2026
- Indian Miniature Paintings and Museums