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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,...
Calculation of Consideration for the Plant:
To calculate the consideration for the plant, we need to look at the value of the debentures issued by Zee Limited to Dee Limited.

Value of Debentures:
- Face value of debentures = Rs.100 each
- Number of debentures issued = Book value of plant / Face value of debentures
- Number of debentures issued = Rs.4,50,000 / Rs.100 = 4,500 debentures

Total Value of Debentures:
- Total value of debentures = Face value of debentures * Number of debentures issued
- Total value of debentures = Rs.100 * 4,500 = Rs.4,50,000

Discount on Debentures:
- Discount on debentures = 10% of Total value of debentures
- Discount on debentures = 10/100 * Rs.4,50,000 = Rs.45,000

Consideration Paid to Dee Limited:
- Consideration paid = Total value of debentures - Discount on debentures
- Consideration paid = Rs.4,50,000 - Rs.45,000 = Rs.4,05,000
Therefore, the correct consideration paid by Zee Limited to Dee Limited for the plant is Rs.4,50,000, which is option 'C'.
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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?
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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?.
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