Multiple Choice Questions on The amount of discount to be written off at the end of the third year is ........ for Common University Entrance Test (CUET) Preparation

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Multiple Choice Questions

The amount of discount to be written off at the end of the third year is ........

Accountancy (CUET) Accounting For Debentures
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    XYZ Ltd. Issued 9% Debentures of the face value of Rs 2,00,000 at a discount of 6%. The debentures were repayable by annual drawings of Rs 40,000.

    The amount of discount to be written off at the end of the third year is

    Rs 800                                  

    Incorrect Answer

       Rs 2,400                                             

    Correct Answer

     Rs 3,200                                             

    Incorrect Answer

     Rs 4,000

    Incorrect Answer
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    Explanation:

      The amount of discount to be written off at the end of the third year is Rs 2,400               

    Ratio of writing off = 2,00,000 : 1,60,000:1,20,000:80,000: 40,000 = 5 :4:3:2:1

    Discount = 2,00,000 X 6% = 12,000

    12,000 X 3/15 = 2,400

    By: Ankur sharma
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