In 2016, A Ltd. issued 12% ₹50,00,000 debentures at a discount of 8%; the debentures were redeemable in 2020. In 2020, the company gave the debenture-holders the option of converting the debentures into equity shares at
CS Executive · Corporate and Management Accounting · PYQS · June 2022
In 2016, A Ltd. issued 12% ₹50,00,000 debentures at a discount of 8%; the debentures were redeemable in 2020. In 2020, the company gave the debenture-holders the option of converting the debentures into equity shares at a premium of 25%. One debentureholder, holding ₹2,00,000 debentures want to exercise the option. What is the face value of the shares that he will get ?
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Corporate Accounting
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