Question

On 1^st April 2023, Anand Limited issued 10%, 50,000 Debentures of ₹ 100 each as collateral security to ABC Bank against a loan raised of ₹ 80,00,000. It also issued 12%, 40,000 Debentures of ₹ 100 each on 1^st October, 2023 in the stock market to invest money in a new line of product.

How much interest on debentures becomes payable by the company on 31^st March 2024?

विकल्प

• ₹ 7,40,000

• ₹ 2,40,000

• ₹ 5,00,000

• ₹ 4,80,000

Answer 1

₹ 2,40,000

Explanation:

Interest on debentures issued in the market:

Number of debentures: ₹ 40,000

Face value per debenture: ₹ 100

Interest rate: 12%

Interest on debentures: ₹ 40,000 × 100 × 12%

= ₹ 4,80,000

Period outstanding: From 1st October 2023 to 31st March 2024 (6 months)

Total interest payable: `₹ 4,80,000 xx 6/12`

= ₹ 2,40,000

∴ The only interest payable on debentures is ₹ 2,40,000 related to the debentures issued to the stock market.