By what amount Bank A/c is to be credited while redemption when 10,000 debentures of Rs. 100 each are isued at premium of Rs. 20 and to be redeemed at par ?

None of these

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Loss

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Capital

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Profits

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Solution

The correct option is D
Profits

Redemption amount to be credited to Bank A/c = Rs. 10,000 * 10 = Rs. 10,00,000

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By what amount Bank A/c is to be credited while redemption when 10,000 debentures of Rs. 100 each are isued at premium of Rs. 20 and to be redeemed at par ?

The correct option is D Profits Redemption amount to be credited to Bank A/c = Rs. 10,000 * 10 = Rs. 10,00,000

The correct option is D
Profits

Redemption amount to be credited to Bank A/c = Rs. 10,000 * 10 = Rs. 10,00,000