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A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% payable at a premium of 5% at the end of 5 years.The loss on issue of debenture will be?
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A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% pay...
**Calculation of the Issue Price of Debentures:**
The issue price of debentures can be calculated using the following formula:
Issue Price = Face Value - Discount + Premium
Given:
Face Value (FV) = Rs. 100
Discount = 7.5% of FV
Premium = 5% of FV
Discount = 7.5% of Rs. 100 = Rs. 7.50
Premium = 5% of Rs. 100 = Rs. 5.00
Issue Price = Rs. 100 - Rs. 7.50 + Rs. 5.00 = Rs. 97.50
**Calculation of Total Issue Amount:**
Total Issue Amount = Issue Price x Number of Debentures
Given:
Number of Debentures = 3000
Total Issue Amount = Rs. 97.50 x 3000 = Rs. 292,500
**Calculation of Loss on Issue of Debentures:**
Loss on Issue of Debentures = Total Issue Amount - Total Face Value
Given:
Total Face Value = Face Value x Number of Debentures
Total Face Value = Rs. 100 x 3000 = Rs. 300,000
Loss on Issue of Debentures = Rs. 292,500 - Rs. 300,000 = -Rs. 7,500
Therefore, the loss on the issue of debentures is Rs. 7,500.
**Explanation:**
1. A Ltd issued 3000 debentures with a face value of Rs. 100 each.
2. These debentures were issued at a discount of 7.5% and a premium of 5%.
3. The discount is the reduction in the face value, and the premium is an amount added to the face value.
4. The issue price of the debentures is calculated by subtracting the discount and adding the premium to the face value.
5. In this case, the issue price is Rs. 100 - Rs. 7.50 + Rs. 5.00 = Rs. 97.50.
6. The total issue amount is calculated by multiplying the issue price by the number of debentures issued.
7. The total issue amount for 3000 debentures is Rs. 97.50 x 3000 = Rs. 292,500.
8. The loss on the issue of debentures is calculated by subtracting the total face value from the total issue amount.
9. The total face value for 3000 debentures is Rs. 100 x 3000 = Rs. 300,000.
10. Therefore, the loss on the issue of debentures is Rs. 292,500 - Rs. 300,000 = -Rs. 7,500.
11. The negative sign indicates a loss incurred by the company on the issue of debentures.
The issue price of debentures can be calculated using the following formula:
Issue Price = Face Value - Discount + Premium
Given:
Face Value (FV) = Rs. 100
Discount = 7.5% of FV
Premium = 5% of FV
Discount = 7.5% of Rs. 100 = Rs. 7.50
Premium = 5% of Rs. 100 = Rs. 5.00
Issue Price = Rs. 100 - Rs. 7.50 + Rs. 5.00 = Rs. 97.50
**Calculation of Total Issue Amount:**
Total Issue Amount = Issue Price x Number of Debentures
Given:
Number of Debentures = 3000
Total Issue Amount = Rs. 97.50 x 3000 = Rs. 292,500
**Calculation of Loss on Issue of Debentures:**
Loss on Issue of Debentures = Total Issue Amount - Total Face Value
Given:
Total Face Value = Face Value x Number of Debentures
Total Face Value = Rs. 100 x 3000 = Rs. 300,000
Loss on Issue of Debentures = Rs. 292,500 - Rs. 300,000 = -Rs. 7,500
Therefore, the loss on the issue of debentures is Rs. 7,500.
**Explanation:**
1. A Ltd issued 3000 debentures with a face value of Rs. 100 each.
2. These debentures were issued at a discount of 7.5% and a premium of 5%.
3. The discount is the reduction in the face value, and the premium is an amount added to the face value.
4. The issue price of the debentures is calculated by subtracting the discount and adding the premium to the face value.
5. In this case, the issue price is Rs. 100 - Rs. 7.50 + Rs. 5.00 = Rs. 97.50.
6. The total issue amount is calculated by multiplying the issue price by the number of debentures issued.
7. The total issue amount for 3000 debentures is Rs. 97.50 x 3000 = Rs. 292,500.
8. The loss on the issue of debentures is calculated by subtracting the total face value from the total issue amount.
9. The total face value for 3000 debentures is Rs. 100 x 3000 = Rs. 300,000.
10. Therefore, the loss on the issue of debentures is Rs. 292,500 - Rs. 300,000 = -Rs. 7,500.
11. The negative sign indicates a loss incurred by the company on the issue of debentures.
Community Answer
A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% pay...
Loss on issue of debenture is be Rs. 37,500
first, we calculate the cost of debenture is 3000×100
then we have to take 7.5% of the principal amount that is 3,00,000 and similarly we have to take 5% of same amount
first, we calculate the cost of debenture is 3000×100
then we have to take 7.5% of the principal amount that is 3,00,000 and similarly we have to take 5% of same amount
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A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% payable at a premium of 5% at the end of 5 years.The loss on issue of debenture will be?
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A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% payable at a premium of 5% at the end of 5 years.The loss on issue of debenture will be? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% payable at a premium of 5% at the end of 5 years.The loss on issue of debenture will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% payable at a premium of 5% at the end of 5 years.The loss on issue of debenture will be?.
A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% payable at a premium of 5% at the end of 5 years.The loss on issue of debenture will be? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% payable at a premium of 5% at the end of 5 years.The loss on issue of debenture will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd issued 3000 15% debenture of rs.100 each at discount of 7.5% payable at a premium of 5% at the end of 5 years.The loss on issue of debenture will be?.
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