The company bought a machinery for Rs. 2,10,000 & issued debentures of Rs.100 each at 5% premium. The number of debentures issued is .

2,10,000

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2,000

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3,000

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1,000

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Solution

The correct option is B 2,000
Face value of debentures = 100
Premium = 5% of 100
= Rs 5
Debenture value after premium
= 100+5
= Rs 105
Number of Debentures
= Value of machinery / Issue price of debentures
= 2,10,000/105
= 2,000

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The company bought a machinery for Rs. 2,10,000 & issued debentures of Rs.100 each at 5% premium. The number of debentures issued is .

The correct option is B 2,000Face value of debentures = 100 Premium = 5% of 100 = Rs 5 Debenture value after premium = 100+5 = Rs 105 Number of Debentures = Value of machinery / Issue price of debentures = 2,10,000/105 = 2,000

The correct option is B 2,000
Face value of debentures = 100
Premium = 5% of 100
= Rs 5
Debenture value after premium
= 100+5
= Rs 105
Number of Debentures
= Value of machinery / Issue price of debentures
= 2,10,000/105
= 2,000