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?

Issued at a discount and redeemable at a discount

The correct answer is Option (4) → Issued at a discount and redeemable at a discount 

Depending upon the terms and conditions of issue and redemption of debentures, the following six situations are commonly found in practice. 

Issued at par and redeemable at par

Issued at discount 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 premium

Issued at a premium and redeemable at a premium