Question
A company bought a new machinery worth Rs.4 lakh by
issuing 10% Debentures of value Rs.160 were issued at a premium of 25%. How much amount is credited to the Debenture Account?Solution
Since the debentures are issued at premium, the securities premium account will be credited with the premium amount while the debenture account will be credited with the face value. Total book value = Face value + premium Premium is 25% on face value or it can be said it is 20% on the book value. As such face value is 80% of book value = 80% * 400000 = Rs.320,000.
In which year Indian Contract Act was enacted?
X Ltd. is committed to supply 24,000 bearings per annum to Y Ltd. on steady basis. It is estimated that it costs 10 paise as inventory holding cost per ...
For a given product, the sales of a company @ ₹ 200 per unit is ₹ 20,00,000. Variable cost is Rs 12,00,000 and fixed cost is ₹ 6,00,000. The capac...
Processing transactions in one go after accumulating them for a specific time is called:Â
What is the key function of a Letter of Credit (LC) in international trade?
From the following information calculate the amount of sales to earn a desired profit of Rs.6,000
Fixed Cost: 12,000
Selling Price: 12 per...
Section 64VA(1) of the Insurance Act specifies a criteria related to sufficiency of assets that every insurer and re-insurer should at all times maintai...
Amount paid for stationery during 2022-23        ₹ 80,000
Creditors for Stationery on March, 31, 2023       ₹ 7,...
What is the minimum Capital adequacy Ratio (CAR) requirement for a scheduled commercial bank as given by RBI?
Which one of the following is not regarded as Indirect material?
