Question

Amul Ltd. purchased building of Mother Dairy Ltd. for ₹ 40,00,000. The consideration was paid by issue of 10% Debentures of ₹ 1,000 each at a discount of ₹ 200. 10% Debentures Account is credited with ______.

Options

• ₹ 52,00,000.

• ₹ 50,00,000.

• ₹ 48,00,000.

• ₹ 32,00,000.

Answer 1

Amul Ltd. purchased building of Mother Dairy Ltd. for ₹ 40,00,000. The consideration was paid by issue of 10% Debentures of ₹ 1,000 each at a discount of ₹ 200. 10% Debentures Account is credited with ₹ 50,00,000.

Explanation:

Issue price of each debenture:

₹ 1,000 − ₹ 200 = ₹ 800

Number of debentures issued:

₹ 40,00,000 ÷ ₹ 800 = 5,000

Debentures A/c is credited at face value:

5,000 × ₹ 1,000 = ₹ 50,00,000