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

None of these

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50,000

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25,000

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30,000

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Solution

The correct option is C
25,000

Premium = 2500 $\times$ 100 $\times$ 10% = 25,000.

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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?

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

Q. Pass necessary Journal entries relating to the issue of debentures for the following:
(a) Issued ₹ 28,000; 10% Debentures of ₹ 100 each at a premium of 15% redeemable at par.
(b) Issued ₹ 30,000; 10% Debentures of ₹ 100 each at a premium of 10% and redeemable at a premium of 15%.
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Safety Locks Ltd, issued to public 2,500 12% Debentures of 100 each at 10% premium. What shall be the amount of premium ?

The correct option is C 25,000 Premium = 2500 × 100 × 10% = 25,000.

The correct option is C
25,000

Premium = 2500 $\times$ 100 $\times$ 10% = 25,000.