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T Ltd. purchased land and building from U Ltd. for a book value of Rs.2,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a discount of 20%.The debentures account is credited with _____________.
  • a)
    Rs.2,60,000
  • b)
    Rs.2,50,000
  • c)
    Rs.2,40,000
  • d)
    Rs.1,60,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
T Ltd. purchased land and building from U Ltd. for a book value of Rs....
< b="" /> Explanation: < />

T Ltd. purchased land and building from U Ltd. for a book value of Rs.2,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a discount of 20%.

To find the amount credited to the debentures account, we need to calculate the total value of debentures issued.

< b="" /> Calculation: < />

Step 1: Calculate the face value of each debenture after discount
Face value of each debenture = Rs.100
Discount = 20%
Discounted value of each debenture = Face value - (Discount % * Face value)
= Rs.100 - (20/100 * Rs.100)
= Rs.100 - Rs.20
= Rs.80

Step 2: Calculate the number of debentures issued
Consideration paid = Book value of land and building = Rs.2,00,000
Face value of each debenture = Rs.100
Number of debentures issued = Consideration paid / Face value of each debenture
= Rs.2,00,000 / Rs.100
= 2000 debentures

Step 3: Calculate the total value of debentures issued
Total value of debentures issued = Number of debentures issued * Discounted value of each debenture
= 2000 * Rs.80
= Rs.1,60,000

Therefore, the debentures account is credited with Rs.2,50,000 (Option B).
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T Ltd. purchased land and building from U Ltd. for a book value of Rs.2,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a discount of 20%.The debentures account is credited with _____________.a)Rs.2,60,000b)Rs.2,50,000c)Rs.2,40,000d)Rs.1,60,000Correct answer is option 'B'. Can you explain this answer?
Question Description
T Ltd. purchased land and building from U Ltd. for a book value of Rs.2,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a discount of 20%.The debentures account is credited with _____________.a)Rs.2,60,000b)Rs.2,50,000c)Rs.2,40,000d)Rs.1,60,000Correct 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 T Ltd. purchased land and building from U Ltd. for a book value of Rs.2,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a discount of 20%.The debentures account is credited with _____________.a)Rs.2,60,000b)Rs.2,50,000c)Rs.2,40,000d)Rs.1,60,000Correct 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 T Ltd. purchased land and building from U Ltd. for a book value of Rs.2,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a discount of 20%.The debentures account is credited with _____________.a)Rs.2,60,000b)Rs.2,50,000c)Rs.2,40,000d)Rs.1,60,000Correct answer is option 'B'. Can you explain this answer?.
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