ABC Ltd issued 1,000 debentures of Rs.100 each for Rs.85 and are repayable for Rs.110 each. While repayment, the bank account is debited with .

Rs. 85,000

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Rs. 1,00,000

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Rs. 1,10,000

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Rs. 93,500

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Solution

The correct option is C Rs. 1,10,000
The bank account is debited with amount
= Repayment price per debenture * No. of debentures
= Rs. 110 * 1000
= Rs. 1,10,000

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Similar questions

Pass necessary Journal entries for the issue and redemption of Debentures in the followings cases :

(i) 15,000; $10 %$ Debentures of Rs 100 each issued at $10 %$ premium, repayable at par.

(ii) 6,00,000; $12 %$ Debenture of Rs 500 each issued at $5 %$ premium , repayable at $10 %$ pemium.

Which of the following accounts are debited while repayment of a bank loan ?

Journalise the following

(i) A Debenture issued at Rs.95, repayable at Rs.100.

(ii) A Debenture issued at Rs.95, repayable at Rs.105.

(iii) A Debenture issued at Rs.100, repayable at Rs.105.

The face value of debenture in each of the above cases is Rs.100.

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