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Electronics Ltd. issued 10,000, 6% Debentures of ₹ 100 each at a premium of ₹ 10. It will credit 6% Debentures Account by ______.

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Question

Electronics Ltd. issued 10,000, 6% Debentures of ₹ 100 each at a premium of ₹ 10. It will credit 6% Debentures Account by ______.

Options

  • ₹ 11,00,000.

  • ₹ 10,00,000.

  • ₹ 9,00,000.

  • ₹ 8,00,000.

MCQ
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Solution

Electronics Ltd. issued 10,000, 6% Debentures of ₹ 100 each at a premium of ₹ 10. It will credit 6% Debentures Account by ₹ 10,00,000.

Explanation:

Debentures Account is credited with the face value of debentures, not the issue price.

10,000 × ₹ 100 = ₹ 10,00,000​

The premium of ₹ 10 per debenture is credited separately.

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Chapter 9: Issue of Debentures - QUESTIONS [Page 9.66]

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TS Grewal Accountancy Double Entry Book Keeping Volume 1 and 2 [English] Class 12
Chapter 9 Issue of Debentures
QUESTIONS | Q 12. | Page 9.66
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