ABC Ltd issued 1,000 debentures of Rs.100 each for Rs.85 and are repayable for Rs.110 each. At the time of receipt, the bank account is credited 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 A Rs. 85,000
The bank account is credited with amount
= Issue price per debenture * No. of debentures
= Rs. 85 * 1000
= Rs. 85,000

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Similar questions

Q. 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 .

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.

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.

Q. G Ltd purchased land and building from H Ltd. at a book value of Rs. 2,00,000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%. For this transaction, the debentures account would be credited with -

A company issues the following debentures:

(i) 10,000, 12% debentures of Rs 100 each at par but redeemable at premium of 5% after 5 years;

(ii) 10,000, 12% debentures of Rs 100 each at a discount of 10% but redeemable at par after 5 years;

(iii) 5,000, 12% debentures of Rs 1,000 each at a premium of 5% but redeemable at par after 5 years;

(iv) 1,000, 12% debentures of Rs 100 each issued to a supplier of machinery costing Rs 95,000. The debentures are repayable after 5 years; and

(v) 300, 12% debentures of Rs 100 each as a collateral security to a bank which has advanced a loan of Rs 25,000 to the company for a period of 5 years.

Pass the journal entries to record the: (a) issue of debentures; and (b) repayment of debentures after the given period.

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ABC Ltd issued 1,000 debentures of Rs.100 each for Rs.85 and are repayable for Rs.110 each. At the time of receipt, the bank account is credited with.

The correct option is A Rs. 85,000The bank account is credited with amount = Issue price per debenture * No. of debentures = Rs. 85 * 1000 = Rs. 85,000

The correct option is A Rs. 85,000
The bank account is credited with amount
= Issue price per debenture * No. of debentures
= Rs. 85 * 1000
= Rs. 85,000