LIST I: Basis of Debenture | LIST II: Types of Debenture | ||
---|---|---|---|
(A) | Tenure | (I) | Zero coupon rate |
(B) | Interest rate point of view | (II) | Irreedemable |
(C) | Security | (III) | Registration |
(D) | Bearer | (IV) | Secured |
LIST I: Basis of Debenture | LIST II: Types of Debenture | ||
---|---|---|---|
(A) | Tenure | (I) | Zero coupon rate |
(B) | Interest rate point of view | (II) | Irredeemable |
(C) | Security | (III) | Registration |
(D) | Bearer | (IV) | Secured |
The following journal entry appears in the books of X Co. Ltd.
\[\text{Bank A/c Dr. 4,75,000} \\ \text{Loss on Issue of Debentures A/c Dr. 75,000} \\ \text{To 12\% Debentures A/c 5,00,000} \\ \text{To Premium on Redemption of Debenture A/c 50,000} \]
In this case, the debentures have been issued at a discount of 5%. What is the rate of premium on redemption of debentures?