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Question : Y Ltd. purchased machinery for Rs.90,000. Half the amount was paid in Cash and the remaining half by the issue of 12% Debentures of Rs. 100 each at a discount of 10%.

Debentures Issued of the face value of 

Option 1: Rs 50,000

Option 2: 5,000 debentures 

Option 3: 2,500 Debentures 

Option 4: Rs 45,000


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Rs 50,000


Solution : Answer = Rs 50,000

Machinery   A/c                                  Dr.   90,000
Discount on issue of Debentures A/c Dr.     5,000
To cash A/c                                                           45,000
To  % Debentures                                                 50,000
(45,000/ 90 (100 - 10) = 500 Debentures
Hence, the correct option is 1.

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