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F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:
- a)Rs. 4,00,000
- b)Rs. 5,00,000
- c)Rs. 3,20,000
- d)Rs. 4,80,000
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consi...
Calculation of consideration paid for machinery
The machinery was purchased for a book value of Rs. 4,00,000.
The consideration was paid by issuing debentures at a discount of 20%.
The face value of each debenture is Rs. 100.
Therefore, the number of debentures issued = (4,00,000 / 100) = 4,000.
The discount on each debenture = (20/100) * 100 = Rs. 20.
The amount of consideration paid = (4,000 * 80) = Rs. 3,20,000.
Credit to debenture account
The debenture account will be credited with the amount of consideration paid for the machinery.
Therefore, the debenture account will be credited with Rs. 3,20,000.
However, the options given in the question do not match with the calculated answer.
The correct answer is option 'B', which is not matching with the calculated answer.
Hence, there seems to be an error in the options provided in the question.
The machinery was purchased for a book value of Rs. 4,00,000.
The consideration was paid by issuing debentures at a discount of 20%.
The face value of each debenture is Rs. 100.
Therefore, the number of debentures issued = (4,00,000 / 100) = 4,000.
The discount on each debenture = (20/100) * 100 = Rs. 20.
The amount of consideration paid = (4,000 * 80) = Rs. 3,20,000.
Credit to debenture account
The debenture account will be credited with the amount of consideration paid for the machinery.
Therefore, the debenture account will be credited with Rs. 3,20,000.
However, the options given in the question do not match with the calculated answer.
The correct answer is option 'B', which is not matching with the calculated answer.
Hence, there seems to be an error in the options provided in the question.
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Community Answer
F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consi...
Machinery value = 4,00,000
10% debentures issued Rs. 100 each @ discount of 20%(100 - 100 × 20% )=80
4,00,000/80 = 5,000 debentures
Debenture account always gets credited with it's par value i.e 5,000×100=5,00,000
10% debentures issued Rs. 100 each @ discount of 20%(100 - 100 × 20% )=80
4,00,000/80 = 5,000 debentures
Debenture account always gets credited with it's par value i.e 5,000×100=5,00,000
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F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer?
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F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct 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 F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct 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 F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer?.
F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct 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 F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct 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 F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer?.
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F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:a)Rs. 4,00,000b)Rs. 5,00,000c)Rs. 3,20,000d)Rs. 4,80,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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