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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. -

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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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