ABC Ltd. issued 3,000, 14% Debentures of Rs 100 each at a discount of 5% on January 1, 2012. The debentures are redeemable at par in three equal instalments at the end of the third, fourth and fifth year. What is the value of debentures redeemable at the end of fifth year?

None of these

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3000

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2000

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1000

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Solution

The correct option is D
1000

Value of debentures redeemable at the end of fifth year = 3,00,000/3 = Rs 1,00,000

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Similar questions

Give journal entries for the issue of debentures in the following conditions.

I. Issued 2,000, $12 %$ debentures of Rs 100 each at par, redeemable also at par.

II. Issued 2,000, $12 %$ debentures of Rs 100 each at a discount of $12 %$ , redeemable at par.

III. Issued 2,000, $12 %$ debentures of Rs 100 each at a premium of $5 %$ , redeemable at par.

IV. Issued 2,000, $12 %$ debentures of Rs 100 each at par but redeemable at $5 %$ premium.

V. Issued 2,000, $12 %$ debentures of Rs 100 each at a discount of $2 %$ , redeemable at a premium of $5 %$ .

VI. Issued 2,000, $12 %$ debentures of Rs 100 each at a premium of $5 %$ , redeemable at a premium of $10 %$ .

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B.Ltd., issued 1,000, 12% Debentures of Rs. 100 each on January 1, 2015 at a discount of 5% redeemable at par.

Give Journal entries relating to the issue of debentures and debentures interest for the period ending December 31, 2015 assuming that interest is paid half yearly on June 30 and December 31 and tax deducted at source is 10%. B. Ltd., follows calendar year as its accounting year.

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;

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ABC Ltd. issued 3,000, 14% Debentures of Rs 100 each at a discount of 5% on January 1, 2012. The debentures are redeemable at par in three equal instalments at the end of the third, fourth and fifth year. What is the value of debentures redeemable at the end of fifth year?

The correct option is D 1000 Value of debentures redeemable at the end of fifth year = 3,00,000/3 = Rs 1,00,000

The correct option is D
1000

Value of debentures redeemable at the end of fifth year = 3,00,000/3 = Rs 1,00,000