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Question

Z Ltd. issued 10% Debentures of Rs. 10 to a vendor having face value of Rs. 2,50,000 for purchase of fixed assets of Rs. 2,00,000. Number of debentures to be issued to vendors will be ____.

A
25,000
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B
20,000
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C
10,000
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D
30,000
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Solution

The correct option is D 25,000
The face value here is Rs 2,50,000 which is at a rate of Rs 10.
Hence, the number of debentures to be issued to vendors will be Rs 2,50,000/10 i.e. Rs 25,000.

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