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Question :

Y Ltd., purchased plant and machinery for Rs.2,00,000 from Z Ltd. 20% of the amount was paid by Y Ltd. by accepting a bill of exchange in favour of Z Ltd. and the balance was paid by issuing 6% debentures of Rs. 1,000 each at a premium of 25%.

Number of debentures issued is -------

Option 1: 1,280 debentures 

Option 2: 128 debentures 

Option 3: 160 debentures 

Option 4: 1,600 debentures


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 1,280 debentures


Solution : Answer = 1280 debentures

Plant and Machinery A/C Dr 20,00,000

To B/P - 40,000

To Vendor Co- 1,60,000

Vendor Co - Dr 1,60,000

(1280 x 100) To Debentures 1,28,000

To Securities Premium 32,000

($\frac{1,60,000}{125}$ = 1280 Debentures.
Hence, the correct option is 1.

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