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Alexa Ltd. purchase… (Class 12 Accountancy SQP 2023-24, Q6a)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2023-24: question 6(a)

From the official CBSE sample question paper for 2023-24, section A, question 6(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q6(a) · 1 mark · MCQIssue and Redemption of Debentures

Alexa Ltd. purchased building from Siri Ltd for ₹8,00,000. The consideration was paid by issue of 6% debentures of ₹100 each at a discount of 20%. The 6% Debentures account is credited with:

  1. (A)₹10,40,000
  2. (B)₹10,00,000
  3. (C)₹9,60,000
  4. (D)₹6,40,000

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Divide the price payable by the issue price, not the face value.

Hint 2

The debentures account always shows face value.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Debentures issued at a 20% discount are issued at ₹ 80 each. Number issued = ₹ 8,00,000 / ₹ 80 = 10,000.

  2. The 6% Debentures A/c is credited at face value: 10,000 × ₹ 100 = ₹ 10,00,000. Option (B).

    1 mark

Answer: (B) ₹10,00,000

Where the marks are

  • 10,000 debentures at face value ₹ 100 (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Issue and Redemption of Debentures, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.