A company issues 1,500 debentures of Rs 200 each at 96% of face value. What amount is credited to the Debentures Account?

Step-by-step solution

1. Calculate the issue price per debenture: 96% of Rs 200 = 0.96 $\times$ 200 = Rs 192.
2. Multiply the issue price by the number of debentures: 1,500 $\times$ 192 = Rs 2,88,000.
3. The amount obtained is the credit to the Debentures Account.

Concept tested: Issue of debentures at discount

Published 28 September 2026 · How this solution was prepared and checked