1st April, 2021, XYZ Ltd. issued 5,000; 8% Debentures of ₹ 100 each at ₹ 96 and redeemable at par after 5 years. The company offered option to the Debenture- holders to convert their holdings into equity shares of ₹ 10 e

CS Executive · Corporate and Management Accounting · PYQS · December 2024
1st April, 2021, XYZ Ltd. issued 5,000; 8% Debentures of ₹ 100 each at ₹ 96 and redeemable at par after 5 years. The company offered option to the Debenture- holders to convert their holdings into equity shares of ₹ 10 each issued at a premium of ₹ 10 after 31st March, 2024, On 1st April, 2024. 20% holders exercised their option. Calculate, the amount credited to Discount on issue of Debenture as on 1.4.2024.
(A) ₹ 1,600
(B) ₹ 3,200
(C) ₹ 800
(D) ₹ 2,400

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Debentures

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