CA Foundation Exam > CA Foundation Questions > Issued 2,000, 12% Debentures of Rs. 100 each ...
Start Learning for Free
Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will be
- a)Rs.14,000
- b)Rs.12,000
- c)Rs.10,000
- d)None of the three
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redee...
Calculation of Loss on Issue of Debentures:
1. Face value of debentures = Rs. 100
2. Number of debentures issued = 2,000
3. Discount given on issue of debentures = 2%
4. Discount on face value = 2% of Rs. 100 = Rs. 2
5. Issue price of debentures = Face value - Discount = Rs. 100 - Rs. 2 = Rs. 98
6. Total amount raised from issue of debentures = Issue price x Number of debentures issued = Rs. 98 x 2,000 = Rs. 1,96,000
7. Redemption price of debentures = Face value + Premium = Rs. 100 + 5% of Rs. 100 = Rs. 105
8. Total amount to be paid at time of redemption = Redemption price x Number of debentures issued = Rs. 105 x 2,000 = Rs. 2,10,000
9. Loss on issue of debentures = Total amount raised - Total amount to be paid at time of redemption = Rs. 1,96,000 - Rs. 2,10,000 = Rs. 14,000
Therefore, the correct answer is option A, i.e. Rs. 14,000.
1. Face value of debentures = Rs. 100
2. Number of debentures issued = 2,000
3. Discount given on issue of debentures = 2%
4. Discount on face value = 2% of Rs. 100 = Rs. 2
5. Issue price of debentures = Face value - Discount = Rs. 100 - Rs. 2 = Rs. 98
6. Total amount raised from issue of debentures = Issue price x Number of debentures issued = Rs. 98 x 2,000 = Rs. 1,96,000
7. Redemption price of debentures = Face value + Premium = Rs. 100 + 5% of Rs. 100 = Rs. 105
8. Total amount to be paid at time of redemption = Redemption price x Number of debentures issued = Rs. 105 x 2,000 = Rs. 2,10,000
9. Loss on issue of debentures = Total amount raised - Total amount to be paid at time of redemption = Rs. 1,96,000 - Rs. 2,10,000 = Rs. 14,000
Therefore, the correct answer is option A, i.e. Rs. 14,000.
Free Test
FREE
| Start Free Test |
Community Answer
Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redee...
Loss on issue of debentures will include both the discount at the time of issue and the premium which is payable at the time of redemption the total value of debentures issued is 2000 ×100=200000 discount is 2% and therefore the total discount was 200000×2%=4000 and premium payable at redemption is 5% of 2 lacs which is equal to 10000 show the total value of loss on issue of debentures will be 10000 + 4000 is equal to 14000
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer?
Question Description
Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer?.
Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will bea)Rs.14,000b)Rs.12,000c)Rs.10,000d)None of the threeCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup