The 'Debenture Redemption Fund' of a company stood at Rs. 16,000 represented by Rs. 20,000 (nominal) investment. The company in order to redeem debentures of Rs. 10,000 at 1% premium sold Rs. 12000 (nominal) investments of Rs. 100 each at Rs. 84 each for the purpose of redeeming Rs. 10,000 debentures at a premium of 1%. After the redemption of debentures, the balance in the Debenture Redemption Fund a/c will be:
A. Rs. 5,690/5,690
B. Rs. 6,270/6,270
C. Rs. 6,380/6,380
D. Rs. 7,220/7,220
Answer: Option D
This Question Belongs to Commerce >> Accounting
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