Transcribed Image Text: Q# 01
Mr. Shahid Iqbal issued most recently (1st January 2012) 9% bond payable in 5 Year with Annual
Interest Payment on 1st January Every year. Par Value of Bond is Rs, 100,000 and Market or
Competitors have issued similar risky bond on 8% interest rate per annum.
Calculate Market or Intrinsic Price of Bond.
With of Market value and given data, prepare Schedule for Amortization of Premium or
Discount on Bond by Effective interest rate or Reducing Balance method.
Prepare all necessary Journal entries from January 01, 2012 to January 01, 2017.