wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

X ltd issued 1,000 debentures at discount of 10% having face value of Rs.100 & redeemable at par. The company will pay back at the time of redemption.

A
Rs. 1,10,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Rs. 1,20,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Rs. 90,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Rs. 1,00,000
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is D Rs. 1,00,000
At the time of redemption, pay back amount
= No. of debentures x Face value of debenture
= 1,000 x Rs. 100
= Rs. 1,00,000
Because debentures are redeemed at par.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Issued at Par and Redeemed at Par
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon