Question

Shyamla Ltd. purchased machinery of ₹ 9,50,000 from Rohini Ltd. The payment was made by issue of 9% Debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 10% after four years. The number of debentures issued in favour of Rohini Ltd. will be

विकल्प

• 10,000.

• 9,500.

• 9,050.

• 8,636.

Answer 1

10,000.

Explanation:

Each ₹ 100 debenture is issued at a discount of 5%, so its issue price is:

₹ 100 − ₹ 5 = ₹ 95

No. of Debentures = `(9,50,000)/95 = 10,000`

The premium payable on redemption does not affect the number of debentures issued.