Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by the firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of ₹ 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of ₹ 45,00,000. At the time of issue of Debenture they also issued equity Share of ₹ 30,00,000 at 20% premium.Read the following case study and answer question.
What will be the amount of premium on Redemption of Debentures.
₹12,50,000
Premium = 12.5% of ₹1,00,00,000 = ₹12,50,000.
Important Questions from Accounting for Debentures
Balance of Debenture Redemption Reserve A/c after the redemption of debenture is credited to:
Calculate the number of Debentures issued by A Ltd. for consideration other than cash:
‘Discount on issue of debenture’, which is to be written off under one operating cycle is shown under:
If the consideration for issue of Debentures is less than the amount of debentures issued, then the difference is:
When Debentures are issued at par and are redeemable at a premium, the Loss on such an issue is debited to:
