Practicing Success
Read the following information and answer the questions: On 1st April 2013, a company made an issue of 10,000, 9% debentures of ₹ 100 each at ₹92 per debenture. The terms of issue provided for redemption of 2,000 debentures every year starting from 31st March 2016, either by conversion into equity shares of ₹20 each or by drawn of lot at par at companies option. On 31st March 2016 Company's redeemed 2,000, 9% debentures by converting them into equity shares of ₹20 each. |
How much amount of equity shares are issued by the company on conversion? |
₹102,000 ₹92000 ₹80000 ₹184000 |
₹184000 |
The correct answer is Option 4- ₹184000. No of debentures = 2000 Total amount = 2000 x 92 |