Debentures of Rs. 1,00,000 are issued a discount of 1%. So the cash inflow from the issue of debentures is .

Rs. 98,000

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Rs. 99,000

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Rs. 1,00,000

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Rs. 1,01,000

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Solution

The correct option is B Rs. 99,000
Discount = 1% of Rs. 1,00,000 = Rs. 1,000
Cash inflow = Rs. 1,00,000 - Rs. 1,000 = Rs. 99,000

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Similar questions

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

X.Ltd. issued 15,000, 10% debentures of Rs 100 each. Give journal entries and the Balance Sheet in each of the following cases:

(i) The debentures are issued at a premium of 10%;

(ii) The debentures are issued at a discount of 5%;

(iii) The debentures are issued as a collateral security to bank against a loan of Rs 12,00,000; and

(iv) The debentures are issued to a supplier of machinery costing Rs 13,50,000.

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