Question : If a company issued 1,000, 12% debentures of 100 each at a premium of 10%. Here, in 12% debentures, 12% represents:
Option 1: Rate of dividend
Option 2: Rate of tax
Option 3: Rate of interest
Option 4: None of the above
Correct Answer: Rate of interest
Solution : If a company issued 1,000, 12% debentures of ₹100 each at a premium 10%. Here, 12% in 12% debentures represents rate of interest. Hence, the correct answer is Option 3.
Question : Loss on issue of Debentures arises when
Question : If debentures of Rs. 20,000 are issued at par and are redeemable at a premium of 10%, the premium payable is debited to
Question : On 1st April, 2018, RJ. Ltd. issued Rs. 10,00,000, 9% Debentures of Rs. 100 each at a discount of 10%. These debentures were redeemable at a premium of 5% after four years. Premium on Redemption of Debentures debited/credited with ______.
Question : Prakash Ltd. purchased assets worth Rs.2,20,000 and also took over the liabilities (creditors) of Rs.40,000 of Ajay Ltd. for a purchase consideration of Rs.1,92,000. Prakash Ltd. paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of
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