Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

Answer the questions from the passage-

XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took overs its liabilities of Rs 20,000 for a purchase consideration of Rs 3,15,000. XYZ Ltd., paid the purchase consideration by issuing 12% debentures of Rs 100 each at a premium of 5%.

Which situation is not true about Issue of Debentures-

Options:

Issued at par and redeemable at par

Issued at a premium and redeemable at par

Issued at par and redeemable at a premium

Issued at a discount and redeemable at a discount

Correct Answer:

Issued at a discount and redeemable at a discount

Explanation:

Right Answer not mentioned in NTA Answer key