Question:
Paratigm Ltd. issued 40,000, 11% debentures of \(₹100\) each at a discount of 5%, redeemable at a premium. On issue of these debentures ‘Loss on Issue of Debentures Account’ was debited with \(₹4,00,000\). The amount of premium on redemption of debentures was :
Paratigm Ltd. issued 40,000, 11% debentures of \(₹100\) each at a discount of 5%, redeemable at a premium. On issue of these debentures ‘Loss on Issue of Debentures Account’ was debited with \(₹4,00,000\). The amount of premium on redemption of debentures was :
Show Hint
Loss = discount + premium payable on redemption.
Updated On: Jul 8, 2025
- \(₹4,00,000\)
- \(₹2,00,000\)
- \(₹4,40,000\)
- \(₹20,000\)
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Discount on issue = \(40,000 \times 5 = ₹2,00,000\)
Loss = \(₹4,00,000\) → Premium = \(₹2,00,000\).
Loss = \(₹4,00,000\) → Premium = \(₹2,00,000\).
Was this answer helpful?
0
0
Top Questions on Issue of Debentures
- Varsha Ltd. invited applications for issuing 2,000, 12% debentures of ₹ 100 each at a premium of ₹ 30 per debenture. Full amount was payable on application. Applications were received for 5,000 debentures. Applications for 3,000 debentures were rejected and money refunded. Debentures were allotted to the remaining applicants. Pass necessary journal entries for the above transactions in the books of Varsha Ltd.
- CBSE CLASS XII - 2025
- Accountancy
- Issue of Debentures
- On 1stApril, 2023, Viya Ltd. issued 20,000, 10% debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ended 31stMarch, 2024 will be :
- CBSE CLASS XII - 2025
- Accountancy
- Issue of Debentures
- In case of issue of debentures as a collateral security for the loan taken from the bank, which account will be debited?
- Bihar Board XII - 2025
- Accountancy
- Issue of Debentures
- Discount on issue of debentures is recorded in the form of:
- Bihar Board XII - 2025
- Accountancy
- Issue of Debentures
- Method(s) of redemption of debenture is/are:
- Bihar Board XII - 2025
- Accountancy
- Issue of Debentures
View More Questions
Questions Asked in CBSE CLASS XII exam
- VX Ltd. issued 30,000, 8% debentures of ₹ 100 each at a discount of 10% redeemable at a certain rate of premium. On issue of these debentures, ‘Loss on issue of debentures account’ was debited with ₹ 4,50,000. The amount of premium on redemption of debentures was___.
- CBSE CLASS XII - 2025
- Debentures
- Student to attempt either option (A) or (B):
(A) Write two features of an ideal contraceptive. Explain any one natural contraceptive method that makes the chances of conception almost nil.
(B) Explain GIFT and ICSI.- CBSE CLASS XII - 2025
- Human Reproduction
- Why are restrictions imposed on MTP in India? Up to how many weeks or trimesters, is MTP considered relatively safe for a female, if necessary to perform, by a medical practitioner?
- CBSE CLASS XII - 2025
- Ecosystem
- Write the anode and cathode reactions and the overall cell reaction occurring in a lead storage battery during its use.
- CBSE CLASS XII - 2025
- Coordination Compounds
- Surface area of a balloon (spherical), when air is blown into it, increases at a rate of 5 mm²/s. When the radius of the balloon is 8 mm, find the rate at which the volume of the balloon is increasing.
View More Questions