India Steel Ltd., issued 6,000 12% Debentures of Rs. 100 each at par, redeemable at 5% premium. What is the amount of premium?

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

50,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

25,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

30,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
30,000

Premium = 6000 $\times$ 100 $\times$ 5 % = Rs 30,000.

Suggest Corrections

Similar questions

Safety Locks Ltd, issued to public 2,500 12% Debentures of 100 each at 10% premium redeemable at par. What amount shall be repaid to debentureholders?

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 $10 %$ .

Beeta Ltd, issued 5,000, $9 %$ debentures of Rs 500 each. Pass the necessary journal entries for the issue of Debentures in the books of the company in the following cases:

(i) When debentures are issued at $10 %$ premium and redeemable at par.

(ii) When debentures are issued at par and redeemable at $10 %$ premium.

(iii) When debentures are issued at $5 %$ premium and redeemable at $10 %$ premium.

(iv) When debentures are issued at $25 %$ to the vendors for machinery purchased for Rs 6,25,000.

Q. Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 4,00,000; 9% Debentures of ₹ 100 each at a premium of 8% redeemable at 10% premium.
(b) Issued ₹ 6,00,000; 9% Debentures of ₹ 100 each at par, repayable at a premium of 10%.
(c) Issued ₹ 10,00,000; 9% Debentures of ₹ 100 each at a premium of 5%, redeemable at par.

Q. Pass necessary Journal entries for the issue of debentures in the following cases:
(a) ₹ 40,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at par.
(b) ₹ 70,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.

Join BYJU'S Learning Program

India Steel Ltd., issued 6,000 12% Debentures of Rs. 100 each at par, redeemable at 5% premium. What is the amount of premium?

The correct option is D 30,000 Premium = 6000 × 100 × 5 % = Rs 30,000.

The correct option is D
30,000

Premium = 6000 $\times$ 100 $\times$ 5 % = Rs 30,000.