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Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:
- a)Rs. 50,000
- b)Rs. 40,000
- c)Rs. 30,000
- d)None of the above.
Correct answer is option 'B'. Can you explain this answer?
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Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debe...
Calculation of Loss on Redemption of Debentures
- Face value of debentures = 20,000 x Rs. 10 = Rs. 2,00,000
- 8% interest on debentures = 20,000 x Rs. 10 x 8% = Rs. 16,000 per annum
- Total interest payable for 5 years = Rs. 16,000 x 5 = Rs. 80,000
- Redemption value of debentures = Face value + Premium = Rs. 2,00,000 + 20% of Rs. 2,00,000 = Rs. 2,40,000
- Loss on redemption of debentures = Redemption value - (Face value + Total interest) = Rs. 2,40,000 - (Rs. 2,00,000 + Rs. 80,000) = Rs. 40,000
Therefore, the correct answer is option B, Rs. 40,000.
- Face value of debentures = 20,000 x Rs. 10 = Rs. 2,00,000
- 8% interest on debentures = 20,000 x Rs. 10 x 8% = Rs. 16,000 per annum
- Total interest payable for 5 years = Rs. 16,000 x 5 = Rs. 80,000
- Redemption value of debentures = Face value + Premium = Rs. 2,00,000 + 20% of Rs. 2,00,000 = Rs. 2,40,000
- Loss on redemption of debentures = Redemption value - (Face value + Total interest) = Rs. 2,40,000 - (Rs. 2,00,000 + Rs. 80,000) = Rs. 40,000
Therefore, the correct answer is option B, Rs. 40,000.
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Community Answer
Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debe...
20,000×10=2,00,000
2,00,000×20%=40,000
2,00,000×20%=40,000
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Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:a)Rs. 50,000b)Rs. 40,000c)Rs. 30,000d)None of the above.Correct answer is option 'B'. Can you explain this answer?
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Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:a)Rs. 50,000b)Rs. 40,000c)Rs. 30,000d)None of the above.Correct answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:a)Rs. 50,000b)Rs. 40,000c)Rs. 30,000d)None of the above.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:a)Rs. 50,000b)Rs. 40,000c)Rs. 30,000d)None of the above.Correct answer is option 'B'. Can you explain this answer?.
Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:a)Rs. 50,000b)Rs. 40,000c)Rs. 30,000d)None of the above.Correct answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:a)Rs. 50,000b)Rs. 40,000c)Rs. 30,000d)None of the above.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Alfa Ltd. issued 20, 000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:a)Rs. 50,000b)Rs. 40,000c)Rs. 30,000d)None of the above.Correct answer is option 'B'. Can you explain this answer?.
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