Question

Moon Ltd. issued 40,000, 10% debentures of ₹ 100 each at a certain rate of discount and were to be redeemed at a 20% premium. Exiting balance of securities premium before issuing of these debentures was ₹ 12,00,000 and after writing off loss on issue of debentures, the balance in securities premium was ₹ 2,00,000. At what rate of discount were these debentures issued?

Options

• 10%

• 5%

• 25%

• 15%

Answer 1

5%