A company purchased 1000, 12% debentures of ₹ 100 each @ ₹ 97 (cum-interest) on 1 st May, 2023. The company has the practice to close its books of accounts on 31 st December every year. Interest on debentures is payable
CS Executive · Corporate and Management Accounting · PYQS · December 2023
A company purchased 1000, 12% debentures of ₹ 100 each @ ₹ 97 (cum-interest) on 1 st May, 2023. The company has the practice to close its books of accounts on 31 st December every year. Interest on debentures is payable half-yearly on 30 th June and 31 st December. In this purchase, the amount to be debited to Debenture Redemption Account is:
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A), (C). Official source note: Correct option is A i.e. ₹ 93000. Option C may also be considered as correct because question is asking for amount to be debited in debenture redemption A/c.
Topics: Corporate Accounting
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