Question

On 1^st April, 2024, DD Ltd. issued 2,000, 9% Debentures of ₹ 50 each at a premium of 5%, redeemable at a premium of ₹ 10 per debenture after five years. Interest on the debentures was to be paid on half-yearly basis on 30^th September and 31^st March. Interest on the debentures for the year ended 31^st March, 2025 will be:

विकल्प

• ₹ 4,500

• ₹ 9,000

• ₹ 9,450

• ₹ 4,725

Answer 1

₹ 9,000

Explanation:

Interest on debentures is always calculated on their Face Value (Nominal Value), regardless of whether they are issued or redeemed at a premium.

1. Calculate Total Face Value

Number of Debentures: 2,000

Face Value per Debenture: ₹ 50

Total Face Value: 2,000 × 50 = 1,00,000

2. Calculate Annual Interest

Debenture Interest Rate: 9% per annum

Interest for the Year: 9% of 1,00,000 = 9,000