Company bought a Plant for Rs. 2,10,000 & issued Debentures of Rs. 100 each at 5% premium. How many debentures were issued?

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 C
2000

Face value of debentures = 100
Premium = 5% of 100 = 5
Debenture value after peremium = 100+5 = 105
Number of Debentures = 2,10,000/105= 2,000.

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Company bought a Plant for Rs. 1,00,000 & issued Debentures of Rs. 100 each at par. How many debentures were issued?

Company bought a Plant for Rs. 81,000 & issued Debentures of Rs. 100 each at 10% discount. How many debentures were issued?

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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