Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

Z Ltd. issued 10% Debentures of Rs. 10 to a vendor having face value Rs. 2,50,000 for purchase of fixed assets of Rs. 2,00,000. How many debentures were issued to the vendors?

Options:

25,000

20,000

10,000

30,000

Correct Answer:

25,000

Explanation:

Amount of Assets purchased = ₹ 2,00,000
Face value of shares issued = ₹2,50,000
No. of Shares issued = 2,50,000 / 10 = 25,000