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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 will be 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?
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T Ltd. purchased land and building from U Ltd. for a book value of Rs....
Calculation of Consideration Paid:
The consideration paid by T Ltd. to U Ltd. for the purchase of land and building is in the form of 12% Debentures of Rs.100 each issued at a discount of 20%.
Therefore, the total number of debentures issued by T Ltd. to U Ltd. = Consideration paid/ Issue price of debentures
= Rs. 2,00,000 / (80% of Rs. 100)
= Rs. 2,00,000 / Rs. 80
= 2,500 Debentures
Calculation of Face Value of Debentures:
The face value of each debenture is Rs. 100. Therefore, the total face value of 2,500 debentures is:
= Rs. 100 x 2,500
= Rs. 2,50,000
Calculation of Amount Credited to Debentures Account:
Since the debentures were issued at a discount of 20%, the amount credited to the Debentures Account will be the face value of the debentures minus the discount.
Face value of debentures = Rs. 2,50,000
Discount on issue of debentures = 20% of face value = Rs. 50,000
Therefore, the amount credited to the Debentures Account will be:
= Face value of debentures - Discount on issue of debentures
= Rs. 2,50,000 - Rs. 50,000
= Rs. 2,00,000
Hence, the correct answer is option B, Rs. 2,50,000.
The consideration paid by T Ltd. to U Ltd. for the purchase of land and building is in the form of 12% Debentures of Rs.100 each issued at a discount of 20%.
Therefore, the total number of debentures issued by T Ltd. to U Ltd. = Consideration paid/ Issue price of debentures
= Rs. 2,00,000 / (80% of Rs. 100)
= Rs. 2,00,000 / Rs. 80
= 2,500 Debentures
Calculation of Face Value of Debentures:
The face value of each debenture is Rs. 100. Therefore, the total face value of 2,500 debentures is:
= Rs. 100 x 2,500
= Rs. 2,50,000
Calculation of Amount Credited to Debentures Account:
Since the debentures were issued at a discount of 20%, the amount credited to the Debentures Account will be the face value of the debentures minus the discount.
Face value of debentures = Rs. 2,50,000
Discount on issue of debentures = 20% of face value = Rs. 50,000
Therefore, the amount credited to the Debentures Account will be:
= Face value of debentures - Discount on issue of debentures
= Rs. 2,50,000 - Rs. 50,000
= Rs. 2,00,000
Hence, the correct answer is option B, Rs. 2,50,000.
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Community Answer
T Ltd. purchased land and building from U Ltd. for a book value of Rs....
Simple is the solution. for calculating the number of issued deb.=amount payable/face value of share -discount."so,number of deb. issue will be 2,500".Entry will be firstly made for due of the amount = L&B A/c ..........Dr. 2,00,000 To vendor A/c. 2,00,000 Second will be made for making payment by issuing of deb.= vendor A/c.........Dr. 2,00,000 DiscountA/c.......dr 50,000 To deb.A/c. (2,500×100)
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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 will be credited witha)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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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 will be credited witha)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 will be credited witha)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 will be credited witha)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?.
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 will be credited witha)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 will be credited witha)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 will be credited witha)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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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 will be credited witha)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?, a detailed solution 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 will be credited witha)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? has been provided alongside types of 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 will be credited witha)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? theory, EduRev gives you an
ample number of questions to practice 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 will be credited witha)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? tests, examples and also practice CA Foundation tests.
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