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Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited by
- a)Rs. 4,00, 000
- b)Rs. 4,50,000
- c)Rs. 5,00,000
- d)Rs. 5,75,000
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Zee Limited purchased a plant from Dee Limited for book value of Rs.4,...
Understanding the Transaction
Zee Limited purchased a plant from Dee Limited for a book value of Rs.4,50,000. The payment was made through the issuance of debentures.
Debentures Issued
- The debentures have a face value of Rs.100 each.
- The debentures are issued at a 10% discount.
Calculating the Effective Issue Price
- Face value of each debenture: Rs.100
- Discount: 10%
- Effective issue price per debenture = Rs.100 - (10% of Rs.100) = Rs.90
Total Consideration Paid
To determine how many debentures are needed to settle the Rs.4,50,000 obligation:
- Required number of debentures = Total consideration / Effective issue price per debenture
- Required number of debentures = Rs.4,50,000 / Rs.90 = 5,000 debentures
Crediting the Debentures Account
- The total credit to the debentures account is based on the face value of the issued debentures.
- Total face value = Number of debentures x Face value per debenture
- Total face value = 5,000 debentures x Rs.100 = Rs.5,00,000
Conclusion
The debentures account will be credited by Rs.5,00,000, which is the total face value of all debentures issued, confirming that option 'C' is the correct answer.
Zee Limited purchased a plant from Dee Limited for a book value of Rs.4,50,000. The payment was made through the issuance of debentures.
Debentures Issued
- The debentures have a face value of Rs.100 each.
- The debentures are issued at a 10% discount.
Calculating the Effective Issue Price
- Face value of each debenture: Rs.100
- Discount: 10%
- Effective issue price per debenture = Rs.100 - (10% of Rs.100) = Rs.90
Total Consideration Paid
To determine how many debentures are needed to settle the Rs.4,50,000 obligation:
- Required number of debentures = Total consideration / Effective issue price per debenture
- Required number of debentures = Rs.4,50,000 / Rs.90 = 5,000 debentures
Crediting the Debentures Account
- The total credit to the debentures account is based on the face value of the issued debentures.
- Total face value = Number of debentures x Face value per debenture
- Total face value = 5,000 debentures x Rs.100 = Rs.5,00,000
Conclusion
The debentures account will be credited by Rs.5,00,000, which is the total face value of all debentures issued, confirming that option 'C' is the correct answer.
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Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer?.
Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer?.
Solutions for Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Zee Limited purchased a plant from Dee Limited for book value of Rs.4,50,000. The consideration was paid by isuue of 15% debentures of Rs.100 each at a discount of 10%.The debentures account will be credited bya)Rs. 4,00, 000b)Rs. 4,50,000c)Rs. 5,00,000d)Rs. 5,75,000Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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