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Read the following information and answer the given questions:
Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.
Q. What is the amount of discount given to Paras Ltd. on the issue of debentures?
  • a)
    ₹60,000
  • b)
    ₹70,000
  • c)
    ₹75,000
  • d)
    ₹65,000
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Read the following information and answer the given questions:Charan ...
₹7,00,000 – ₹6,30,000 = ₹70,000
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Read the following information and answer the given questions:Charan ...

Calculation of Discount given to Paras Ltd.:

There are two steps involved in calculating the amount of discount given to Paras Ltd. on the issue of debentures by Charan Ltd.

Step 1: Calculation of Total Value of Debentures issued:
- Number of debentures issued = Total value of assets taken over - Total value of liabilities taken over = ₹6,00,000 - ₹40,000 = ₹5,60,000
- Face value of each debenture = ₹100
- Number of debentures issued = ₹5,60,000 / ₹100 = 5,600 debentures
- Total value of debentures issued = Number of debentures issued * Face value of each debenture = 5,600 * ₹100 = ₹5,60,000

Step 2: Calculation of Discount given:
- Agreed value of Assets and Liabilities = ₹6,30,000
- Total value of debentures issued = ₹5,60,000
- Discount given = Agreed value - Total value of debentures issued = ₹6,30,000 - ₹5,60,000 = ₹70,000

Therefore, the amount of discount given to Paras Ltd. on the issue of debentures is ₹70,000.
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Read the following information and answer the given questions:Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.Q. What is the amount of discount given to Paras Ltd. on the issue of debentures?a)₹60,000b)₹70,000c)₹75,000d)₹65,000Correct answer is option 'B'. Can you explain this answer?
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Read the following information and answer the given questions:Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.Q. What is the amount of discount given to Paras Ltd. on the issue of debentures?a)₹60,000b)₹70,000c)₹75,000d)₹65,000Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the following information and answer the given questions:Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.Q. What is the amount of discount given to Paras Ltd. on the issue of debentures?a)₹60,000b)₹70,000c)₹75,000d)₹65,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following information and answer the given questions:Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.Q. What is the amount of discount given to Paras Ltd. on the issue of debentures?a)₹60,000b)₹70,000c)₹75,000d)₹65,000Correct answer is option 'B'. Can you explain this answer?.
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