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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% Debenture of Rs. 100 each at a discount of 25%. The debentures account is 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 'D'. Can you explain this answer?
Most Upvoted Answer
T Ltd. purchased land and building from U Ltd. for a book value of Rs....
25 % dis on 200000 = 50000 200000- 50000 = 150000 ( dis. deducted from the amount) i think ans is 150000..... I hope it helps u
Community Answer
T Ltd. purchased land and building from U Ltd. for a book value of Rs....
Explanation:


In this scenario, T Ltd. purchased land and building from U Ltd. for a book value of Rs. 2,00,000. The consideration for the purchase was paid by issuing 12% debentures of Rs. 100 each at a discount of 25%. We need to determine the amount credited to the debentures account.

Step 1: Calculate the total value of debentures issued:
The total value of debentures issued can be calculated by multiplying the number of debentures issued by their face value, i.e., Rs. 100.

Number of debentures issued = Book value of land and building / Face value of debentures
= Rs. 2,00,000 / Rs. 100
= 2000 debentures

Total value of debentures issued = Number of debentures issued * Face value of debentures
= 2000 * Rs. 100
= Rs. 2,00,000

Step 2: Calculate the discount on debentures:
The discount on debentures can be calculated by multiplying the total value of debentures issued by the discount rate, i.e., 25%.

Discount on debentures = Total value of debentures issued * Discount rate
= Rs. 2,00,000 * 25%
= Rs. 50,000

Step 3: Calculate the amount credited to the debentures account:
The amount credited to the debentures account is the total value of debentures issued minus the discount on debentures.

Amount credited to the debentures account = Total value of debentures issued - Discount on debentures
= Rs. 2,00,000 - Rs. 50,000
= Rs. 1,50,000

Therefore, the correct answer is option 'D' - Rs. 2,00,000.
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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% Debenture of Rs. 100 each at a discount of 25%. The debentures account is credited with _________.a)Rs. 2,60,000b)Rs. 2,50,000c)Rs. 2,40,000d)Rs. 1,60,000Correct answer is option 'D'. Can you explain this answer?
Question Description
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% Debenture of Rs. 100 each at a discount of 25%. The debentures account is credited with _________.a)Rs. 2,60,000b)Rs. 2,50,000c)Rs. 2,40,000d)Rs. 1,60,000Correct answer is option 'D'. 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 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% Debenture of Rs. 100 each at a discount of 25%. The debentures account is credited with _________.a)Rs. 2,60,000b)Rs. 2,50,000c)Rs. 2,40,000d)Rs. 1,60,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2025 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% Debenture of Rs. 100 each at a discount of 25%. The debentures account is credited with _________.a)Rs. 2,60,000b)Rs. 2,50,000c)Rs. 2,40,000d)Rs. 1,60,000Correct answer is option 'D'. Can you explain this answer?.
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