23 Views

Question :

Y Ltd., purchased plant and machinery for Rs.2,00,000 from Z Ltd. 20% of the amount was paid by Y Ltd. by accepting a bill of exchange in favour of Z Ltd. and the balance was paid by issuing 6% debentures of Rs. 1,000 each at a premium of 25%.

Number of debentures issued is -------

Option 1: 1,280 debentures 

Option 2: 128 debentures 

Option 3: 160 debentures 

Option 4: 1,600 debentures


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 1,280 debentures


Solution : Answer = 1280 debentures

Plant and Machinery A/C Dr 20,00,000

To B/P - 40,000

To Vendor Co- 1,60,000

Vendor Co - Dr 1,60,000

(1280 x 100) To Debentures 1,28,000

To Securities Premium 32,000

($\frac{1,60,000}{125}$ = 1280 Debentures.
Hence, the correct option is 1.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships | Application Deadline: 30th Nov'24
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities In QS Asia Rankings 2025 | Scholarships worth 210 CR
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Application Deadline: 1st Dec 2024
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books