You visited us 1 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard XII

Accountancy

Interest on Debentures

On 1st April ...

Question

On 1st April 2017, Sunrise Ltd issued 5000, 8% Debentures of Rs. 100 each at a discount of 5%. What will be the total amount of interest for the year ending 31st March 2018?

38,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

42,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

40,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

25,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
40,000

Interest

= 50001008%

= 40,000

Suggest Corrections

Similar questions

Q. On 1st April, 2015. Mathew Ltd. issued 10,000, 9% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 5%. These debentures were redeemable as follows:

On 31st March, 2016	2,000 Debentures;
On 31st March, 2017	5,000 Debentures;
On 31st March, 2018	3,000 Debentures.

Prepare the Loss on Issue of Debentures Account, Debentures Account and Premium on Redemption of Debentures Account for three years.

Q. On 1st April, 2015, V.V.L.Ltd issued 1,000, 9% Debentures of ₹ 100 each at a discount of 6%, redeemable at a premium of 10% after three years. Pass necessary journal entries for the issue of debentures and debenture interest for the year ended 31st March, 2016, assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year.

Q. X Ltd issues

500, 15 %

Debentures of Rs

100

each on

1 s t

May at a discount of

10 %

redeemable at a premium of

5 %

after

4

years. Interest was payable half yearly on

30 t h

June and

31 s t

December. The amount of interest debited to profit & Loss Account for the year ended

31 s t

March is-

On 1st June, 2017, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years. All the debentures were subscribed and allotment was made.

Prepare the Balance Sheet (extract) as at 31st March, 2018.

Q. On 1st April, 2017, Solar Power Ltd. issued 10,000, 8% Debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 15% at the end of five years. All the debentures were subscribed and allotment was made. The company had balance in Securities Premium Reserve of ₹ 80,000.
Prepare the Balance Sheet (extract) as at 31st March, 2018.

Join BYJU'S Learning Program

On 1st April 2017, Sunrise Ltd issued 5000, 8% Debentures of Rs. 100 each at a discount of 5%. What will be the total amount of interest for the year ending 31st March 2018?

The correct option is C 40,000 Interest = 5000*100*8% = 40,000

The correct option is C
40,000

Interest

= 50001008%

= 40,000