G Ltd. purchased land and building from H Ltd. at a book value of ₹2,00,000. The consideration was paid by issue of 12% debentures of ₹100 each at a discount of 20%. For this transaction, the debentures account would be
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
G Ltd. purchased land and building from H Ltd. at a book value of ₹2,00,000. The consideration was paid by issue of 12% debentures of ₹100 each at a discount of 20%. For this transaction, the debentures account would be credited with —
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) ₹2,50,000. Debentures issued at 80 each: face value credited = 2,00,000/0.80 = 2,50,000.
Topics: Fundamentals of Accounting and Auditing
Related Questions in this Topic
- 'Disclaimer of Opinion' means —
- Which of the following is necessarily to be included in an auditor's report —
- Detection and prevention of fraud is the _________ objective of auditing activity.
- The form and basic contents of statutory audit report are —
- For auditors, which of the following document generally contains the scope of work —