Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

To meet the requirements of funds for starting a new factory, the company issued 50,000, 10% debentures of र10 each and 2000, 8% debentures of र100 each to the vendor of the machinery purchased for र7,00,000.

How many debentures are issued in total by the company?

Options:

50000

51000

60000

52000

Correct Answer:

52000

Explanation:

10% debentures= 50000
8% debentures to vendor= 2000
Total = 50000 + 2000 =52000