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Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppes on 1st Jan 2014. under the term of issue 1/5th of the debentures are redeemed annually. 1st redemption on 31/12/14 calculate discount to be written off in 2017.? a)8000 b)16000 c)20000 d)12000
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Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppe...
4000(debentures outstanding in 2017) *60000(total discount) / 30000 (sum of debentures outstanding)
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Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppe...
Hemant Ltd. - Debenture Redemption
Background Information:
- Hemant Ltd. issued 10,000 debentures of 100 rupees each at 94 rupees on January 1, 2014.
- The debentures carry an interest rate of 12%.
- According to the terms of the issue, 1/5th of the debentures are to be redeemed annually.
Calculation of Debentures Redeemed:
- Total debentures issued: 10,000
- Redemption rate: 1/5
- Number of debentures to be redeemed annually: 10,000 * 1/5 = 2,000
Calculation of Discount:
- Discount on issue: 100 - 94 = 6 rupees per debenture
- Total discount on issue: 6 * 10,000 = 60,000 rupees
- Discount to be written off annually: Total discount / Number of years = 60,000 / (Total number of years until now - 1)
Calculation of Number of Years:
- The first redemption occurred on December 31, 2014.
- We need to calculate the number of years from 2014 until 2017.
- Number of years = 2017 - 2014 = 3 years
Calculation of Discount to be Written Off in 2017:
- Discount to be written off annually: 60,000 / (3 - 1) = 60,000 / 2 = 30,000 rupees
Answer:
The discount to be written off in 2017 is 30,000 rupees.
Explanation:
- Hemant Ltd. issued debentures at a discount, which means that the debentures were sold at a price lower than their face value.
- The discount on issue is calculated by subtracting the issue price from the face value of each debenture.
- In this case, the discount on issue is 6 rupees per debenture.
- The total discount on issue is the discount per debenture multiplied by the number of debentures issued.
- The discount to be written off annually is the total discount on issue divided by the number of years until now minus 1.
- In this case, the first redemption occurred in 2014, and we need to calculate the discount to be written off in 2017.
- The number of years from 2014 until 2017 is 3 years.
- Therefore, the discount to be written off in 2017 is 30,000 rupees.
Background Information:
- Hemant Ltd. issued 10,000 debentures of 100 rupees each at 94 rupees on January 1, 2014.
- The debentures carry an interest rate of 12%.
- According to the terms of the issue, 1/5th of the debentures are to be redeemed annually.
Calculation of Debentures Redeemed:
- Total debentures issued: 10,000
- Redemption rate: 1/5
- Number of debentures to be redeemed annually: 10,000 * 1/5 = 2,000
Calculation of Discount:
- Discount on issue: 100 - 94 = 6 rupees per debenture
- Total discount on issue: 6 * 10,000 = 60,000 rupees
- Discount to be written off annually: Total discount / Number of years = 60,000 / (Total number of years until now - 1)
Calculation of Number of Years:
- The first redemption occurred on December 31, 2014.
- We need to calculate the number of years from 2014 until 2017.
- Number of years = 2017 - 2014 = 3 years
Calculation of Discount to be Written Off in 2017:
- Discount to be written off annually: 60,000 / (3 - 1) = 60,000 / 2 = 30,000 rupees
Answer:
The discount to be written off in 2017 is 30,000 rupees.
Explanation:
- Hemant Ltd. issued debentures at a discount, which means that the debentures were sold at a price lower than their face value.
- The discount on issue is calculated by subtracting the issue price from the face value of each debenture.
- In this case, the discount on issue is 6 rupees per debenture.
- The total discount on issue is the discount per debenture multiplied by the number of debentures issued.
- The discount to be written off annually is the total discount on issue divided by the number of years until now minus 1.
- In this case, the first redemption occurred in 2014, and we need to calculate the discount to be written off in 2017.
- The number of years from 2014 until 2017 is 3 years.
- Therefore, the discount to be written off in 2017 is 30,000 rupees.
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Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppes on 1st Jan 2014. under the term of issue 1/5th of the debentures are redeemed annually. 1st redemption on 31/12/14 calculate discount to be written off in 2017.? a)8000 b)16000 c)20000 d)12000
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Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppes on 1st Jan 2014. under the term of issue 1/5th of the debentures are redeemed annually. 1st redemption on 31/12/14 calculate discount to be written off in 2017.? a)8000 b)16000 c)20000 d)12000 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 Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppes on 1st Jan 2014. under the term of issue 1/5th of the debentures are redeemed annually. 1st redemption on 31/12/14 calculate discount to be written off in 2017.? a)8000 b)16000 c)20000 d)12000 covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppes on 1st Jan 2014. under the term of issue 1/5th of the debentures are redeemed annually. 1st redemption on 31/12/14 calculate discount to be written off in 2017.? a)8000 b)16000 c)20000 d)12000.
Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppes on 1st Jan 2014. under the term of issue 1/5th of the debentures are redeemed annually. 1st redemption on 31/12/14 calculate discount to be written off in 2017.? a)8000 b)16000 c)20000 d)12000 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 Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppes on 1st Jan 2014. under the term of issue 1/5th of the debentures are redeemed annually. 1st redemption on 31/12/14 calculate discount to be written off in 2017.? a)8000 b)16000 c)20000 d)12000 covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Hemant Ltd. issued 10000 12% debentures of 100 ruppes each at 94 ruppes on 1st Jan 2014. under the term of issue 1/5th of the debentures are redeemed annually. 1st redemption on 31/12/14 calculate discount to be written off in 2017.? a)8000 b)16000 c)20000 d)12000.
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