The company purchased plant with a book value of Rs. 1,90,000 from National Victory Company and agreed to pay via issuing 2000 , 10\% Debentures of Rs - Accountancy MCQ CUET Accountancy 2022 20 Aug Shift 2 2026 | ExamTest.live

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The company purchased plant with a book value of Rs. 1, 90, 000 from National Victory Company and agreed to pay via issuing 2000, 10% Debentures of Rs. 100 each at a discount of 5% .Amount that will be credited to 10% Debenture A/c will be:

Solution & Step-by-step Explanation

The Debentures Account is always credited with the nominal (face) value of the debentures issued. Face Value = 2, 000 \times 100 = Rs. 2, 00, 000 .

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The company purchased plant with a book value of Rs. 1, 90, 000 from National Victory Company and agreed to pay via issuing 2000, 10% Debentures of Rs. 100 each at a discount of 5% .Amount that will be credited to 10% Debenture A/c will be:

Rs. 1, 90, 000

Rs. 2, 00, 000

Rs. 2, 40, 000

Rs. 10, 000

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