Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

ABC Industries Ltd, issued 2,000, 10% Debentures of Rs.100 each, at a premium of Rs. 10 per debenture payable as follows: On application Rs. 50 On allotment Rs. 60 The debentures were fully subscribed, and all money was duly received. The amount of long-term borrowings on the balance sheet will be

Options:

2,00,000

1,00,000

1,20,000

2,20,000

Correct Answer:

2,00,000

Explanation:

The correct answer is Option (1) → 2,00,000