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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1 mark

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.What will be the amount of premium on Redemption of Debentures.

Solution & Step-by-step Explanation

1. From the previous solution, the number of debentures is 50, 000 .2. Calculate total nominal face value of debentures: Total Nominal Value = 50, 000 \times Rs. 100 = Rs. 50, 00, 000 Calculate the premium payable on redemption (25%): Premium on Redemption = 25% of 50, 00, 000 = Rs. 12, 50, 000

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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.What will be the amount of premium on Redemption of Debentures.

Rs. 9, 00, 000

Rs. 10, 00, 000

Rs. 12, 50, 000

Rs. 11, 25, 000

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