Question

Mehar Ltd. issued 9% Debentures of ₹ 100 each at a premium of 20% for satisfying the purchase price of machinery of ₹ 4,50,000. 9% Debentures Account will be credited with ______.

Options

• ₹ 4,50,000.

• ₹ 3,75,000.

• ₹ 5,40,000.

• ₹ 3,60,000.

Answer 1

Mehar Ltd. issued 9% Debentures of ₹ 100 each at a premium of 20% for satisfying the purchase price of machinery of ₹ 4,50,000. 9% Debentures Account will be credited with ₹ 3,75,000.

Explanation:

No. of Debentures to be issued = `(4,50,000)/120 = 3,750` Debentures

Debentures Account will be credited with ₹ 3,75,000 (3,750 × ₹ 100).