Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing - Accountancy MCQ CUET Accountancy 2023 11 June Shift 3 2026 | ExamTest.live

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Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45, 00, 000 . At the time of issue of Debenture they also issued equity Share of Rs. 30, 00, 000 at 20% premium.Determine the number of Debentures to be issued.

Solution & Step-by-step Explanation

1. Calculate the issue price per debenture: Face Value = Rs. 100 Discount = 10% of 100 = Rs. 10 Issue Price = 100 - 10 = Rs. 90 Calculate the total number of debentures needed to raise the net required fund of Rs. 45, 00, 000 : Number of Debentures = \frac{Total Funds Required}{Issue Price Per Debenture} = \frac{45 , 00 , 000}{90} = 50, 000 Debentures

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Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45, 00, 000 . At the time of issue of Debenture they also issued equity Share of Rs. 30, 00, 000 at 20% premium.Determine the number of Debentures to be issued.

45, 000 Debentures

40, 500 Debentures

50, 000 Debentures

36, 000 Debentures

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