Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

Z Ltd. issued 10% Debentures of ₹10 to a vendor having nominal value ₹2,50,000 at 20% discount for purchase of fixed assets of ₹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:

The correct answer is option 1- 25,000.

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