CA Foundation Exam > CA Foundation Questions > Ravi Ltd. issued 1,40,00,000, 9% debentures o...
Start Learning for Free
Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :
- a)Rs. 8,40,00,000
- b)Rs. 7,00,00,000
- c)Rs. 15,40,00,000
- d)Rs. 1,40,00,000
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a disco...
Loss per debenture = 100 × (6% + 5%) = Rs. 11
Total loss = 1,40,00,000 × 11 = Rs. 15,40,00,000
Most Upvoted Answer
Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a disco...
Issue of Debentures
Ravi Ltd. issued 1,40,00,000 debentures of Rs. 100 each at a discount of 6%.
Calculation of Issue Price
The face value of each debenture is Rs. 100.
The discount on each debenture is 6% of Rs. 100, which is Rs. 6.
Therefore, the issue price of each debenture is Rs. (100 - 6) = Rs. 94.
Redemption of Debentures
The debentures are redeemable at a premium of 5% after 3 years.
Calculation of Redemption Price
The face value of each debenture is Rs. 100.
The premium on each debenture is 5% of Rs. 100, which is Rs. 5.
Therefore, the redemption price of each debenture is Rs. (100 + 5) = Rs. 105.
Payment Schedule
The payment schedule for the debentures is as follows:
- Rs. 50 on application
- Rs. 44 on allotment
- Rs. 6 on redemption (premium amount)
Calculation of Loss on Issue of Debentures
To calculate the loss on the issue of debentures, we need to find the difference between the total amount received and the total amount payable on redemption.
Total amount received:
Number of debentures issued = 1,40,00,000
Issue price per debenture = Rs. 94
Therefore, total amount received = (1,40,00,000 * 94) = Rs. 1,31,60,00,000
Total amount payable on redemption:
Number of debentures issued = 1,40,00,000
Redemption price per debenture = Rs. 105
Therefore, total amount payable on redemption = (1,40,00,000 * 105) = Rs. 1,47,00,00,000
Loss on issue of debentures = (Total amount received - Total amount payable on redemption)
= (1,31,60,00,000 - 1,47,00,00,000)
= Rs. (-15,40,00,000) [Negative sign indicates loss]
Hence, the total amount of loss on the issue of debentures is Rs. 15,40,00,000 (option c).
Ravi Ltd. issued 1,40,00,000 debentures of Rs. 100 each at a discount of 6%.
Calculation of Issue Price
The face value of each debenture is Rs. 100.
The discount on each debenture is 6% of Rs. 100, which is Rs. 6.
Therefore, the issue price of each debenture is Rs. (100 - 6) = Rs. 94.
Redemption of Debentures
The debentures are redeemable at a premium of 5% after 3 years.
Calculation of Redemption Price
The face value of each debenture is Rs. 100.
The premium on each debenture is 5% of Rs. 100, which is Rs. 5.
Therefore, the redemption price of each debenture is Rs. (100 + 5) = Rs. 105.
Payment Schedule
The payment schedule for the debentures is as follows:
- Rs. 50 on application
- Rs. 44 on allotment
- Rs. 6 on redemption (premium amount)
Calculation of Loss on Issue of Debentures
To calculate the loss on the issue of debentures, we need to find the difference between the total amount received and the total amount payable on redemption.
Total amount received:
Number of debentures issued = 1,40,00,000
Issue price per debenture = Rs. 94
Therefore, total amount received = (1,40,00,000 * 94) = Rs. 1,31,60,00,000
Total amount payable on redemption:
Number of debentures issued = 1,40,00,000
Redemption price per debenture = Rs. 105
Therefore, total amount payable on redemption = (1,40,00,000 * 105) = Rs. 1,47,00,00,000
Loss on issue of debentures = (Total amount received - Total amount payable on redemption)
= (1,31,60,00,000 - 1,47,00,00,000)
= Rs. (-15,40,00,000) [Negative sign indicates loss]
Hence, the total amount of loss on the issue of debentures is Rs. 15,40,00,000 (option c).
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer?
Question Description
Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? 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 Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer?.
Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? 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 Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer?.
Solutions for Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of loss on issue of debentures will be :a) Rs. 8,40,00,000b) Rs. 7,00,00,000c) Rs. 15,40,00,000d) Rs. 1,40,00,000Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup