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Question
10% Debenture issued at ₹ 105 is repayable at ₹ 110, the face value of the debenture being ₹ 100. Calculate the amount of loss on redemption of debentures.
Options
₹ 10
₹ 5
₹ 15
₹ 25
MCQ
Solution
₹ 10
Explanation:
Amount of premium on redemption of debentures will be less on redemption of debentures. Amount of loss on redemption of debentures = ₹ 110 − ₹ 100 = ₹ 10
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Issue of Debentures
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