English

Hero Ltd. issued 15,000, 9% Debentures of ₹ 100 each at a premium of 20%. The prefix '9%' is ______.

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Question

Hero Ltd. issued 15,000, 9% Debentures of ₹ 100 each at a premium of 20%. The prefix '9%' is ______.

Options

  • rate of TDS.

  • rate of Dividend.

  • rate of Interest payable on debentures.

  • rate of Tax.

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Solution

Hero Ltd. issued 15,000, 9% Debentures of ₹ 100 each at a premium of 20%. The prefix '9%' is rate of interest payable on debentures.

Explanation:

The prefix 9% indicates the fixed rate of interest payable annually on the face value of the debentures.

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Chapter 9: Issue of Debentures - TEST YOUR KNOWLEDGE [Page 9.89]

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TS Grewal Accountancy Double Entry Book Keeping Volume 1 and 2 [English] Class 12
Chapter 9 Issue of Debentures
TEST YOUR KNOWLEDGE | Q 2. | Page 9.89
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