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F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.
- a)Rs. 4,00,000
- b)Rs. 5,00,000
- c)Rs. 3,20,000
- d)Rs. 4,80,000
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00...
Value of machinery = 4,00,000
Debenture cost =100 issued at 20% discount
=80
No. of Debenture = 4,00,000/80= 5,000
Jounral entry;
F Ltd. A/C Dr.4,00,000
Debenture issued at at discount Dr. 1,00,000
To 10% Debenture A/C =5,00,000
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F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00...
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F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00...
Answer:
To understand the given question, let's break it down into the following key points:
1. F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000.
2. The consideration was paid by the issue of 10% debentures of Rs. 100 each.
3. The debentures were issued at a discount of 20%.
Now, let's analyze each point and calculate the value to be credited to the debenture account.
1. Purchase of Machinery:
F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. This means that the value of the machinery acquired by F Ltd. is Rs. 4,00,000.
2. Issuance of Debentures:
The consideration for the purchase of machinery was paid by issuing debentures. Each debenture has a face value of Rs. 100.
3. Discount on Debentures:
The debentures were issued at a discount of 20%. This means that the debentures were issued at 80% of their face value.
Now, let's calculate the number of debentures issued and the value to be credited to the debenture account:
Value of Machinery = Rs. 4,00,000
Face Value of each Debenture = Rs. 100
Discount on Debentures = 20%
Calculation:
Value of Debentures = Value of Machinery / (Face Value of Debenture * (1 - Discount))
Value of Debentures = 4,00,000 / (100 * (1 - 0.20))
Value of Debentures = 4,00,000 / (100 * 0.80)
Value of Debentures = 50,00,000 / 80
Value of Debentures = 62,50,000
Therefore, the debenture account was credited with Rs. 62,50,000.
Conclusion:
The correct answer is option 'B' - Rs. 5,00,000.
To understand the given question, let's break it down into the following key points:
1. F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000.
2. The consideration was paid by the issue of 10% debentures of Rs. 100 each.
3. The debentures were issued at a discount of 20%.
Now, let's analyze each point and calculate the value to be credited to the debenture account.
1. Purchase of Machinery:
F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. This means that the value of the machinery acquired by F Ltd. is Rs. 4,00,000.
2. Issuance of Debentures:
The consideration for the purchase of machinery was paid by issuing debentures. Each debenture has a face value of Rs. 100.
3. Discount on Debentures:
The debentures were issued at a discount of 20%. This means that the debentures were issued at 80% of their face value.
Now, let's calculate the number of debentures issued and the value to be credited to the debenture account:
Value of Machinery = Rs. 4,00,000
Face Value of each Debenture = Rs. 100
Discount on Debentures = 20%
Calculation:
Value of Debentures = Value of Machinery / (Face Value of Debenture * (1 - Discount))
Value of Debentures = 4,00,000 / (100 * (1 - 0.20))
Value of Debentures = 4,00,000 / (100 * 0.80)
Value of Debentures = 50,00,000 / 80
Value of Debentures = 62,50,000
Therefore, the debenture account was credited with Rs. 62,50,000.
Conclusion:
The correct answer is option 'B' - Rs. 5,00,000.
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F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer?
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F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. 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 F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. 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 F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer?.
F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. 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 F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. 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 F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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