____________ means repayment of the amount of debentures to debentureholders.

None of these

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Rs 25,000

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Rs 20,000

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Rs 9200

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Solution

The correct option is C
Rs 20,000

Redemption of debentures means repayment of the amount of debentures to debentureholders.

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Similar questions

Journalise the following

(i) A Debenture issued at Rs.95, repayable at Rs.100.

(ii) A Debenture issued at Rs.95, repayable at Rs.105.

(iii) A Debenture issued at Rs.100, repayable at Rs.105.

The face value of debenture in each of the above cases is Rs.100.

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;

(iv) 1,000, 12% debentures of Rs 100 each issued to a supplier of machinery costing Rs 95,000. The debentures are repayable after 5 years; and

(v) 300, 12% debentures of Rs 100 each as a collateral security to a bank which has advanced a loan of Rs 25,000 to the company for a period of 5 years.

Pass the journal entries to record the: (a) issue of debentures; and (b) repayment of debentures after the given period.

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;

(iv) 1,000, 12% debentures of Rs.100 each issued to a supplier of machinery costing Rs.95,000. The debentures are repayable after 5 years; and

(v) 300, 12% debentures of Rs.100 each as a collateral security to a bank which has advanced a loan of Rs. 25000 to the company for a period of 5 years.

pass the journal entries to record the

(i) issue of debewntures; and

(ii) repayment of debentures after the given period.

Q. A company issued