alleryStart learning →Home › Bihar Board Class 12 (Commerce) › Accountancy › Issue and Redemption of Debentures › 1,000 debentures of Rs. 100 issued at 5% discoun…
1,000 debentures of Rs. 100 issued at 5% discount, redeemable at 10% premium. Loss on issue?
ARs. 5,000
BRs. 10,000
CRs. 15,000
DRs. 50,000
Answer & Solution
Correct answer: C. Rs. 15,000
Discount of Rs. 5 plus redemption premium of Rs. 10 is Rs. 15 per debenture, giving Rs. 15,000.
Related questions
Unlike shares, debentures are generallySection 2(30) of the Companies Act, 2013 definesTraditionally, bonds were issued by theWhich investment qualifies for debenture redemption?Amounts invested for redemption can be used only forDebentures of Rs. 3,00,000 mature in January 2018. The investment needed by April 30, 20174,000 debentures of Rs. 100 mature next year. Minimum investment due by April 30?A company may redeem debentures before maturity if