Question

Jio Ltd. purchased business of Disney-Hotstar Ltd. for ₹ 58,40,000 to be paid by issue of cheque for ₹ 50,00,000 and balance by issue of 9% Debentures of ₹ 100 each at a premium of 20%. Debentures were issued on 1st September, 2025. Interest payable for the year ended 31st March, 2026 will be

Options

• ₹ 44,100.

• ₹ 36,750.

• ₹ 35,280.

• ₹ 40,005.

Answer 1

₹ 36,750.

Explanation:

Amount payable through debentures:

₹ 58,40,000 − ₹ 50,00,000 = ₹ 8,40,000

Number of debentures:

`(8,40,000)/120 = 7,000`

Interest is calculated on the face value:

7,000 × ₹ 100 × 9% = ₹ 63,000

For 7 months, from 1st September to 31st March:

`63,000 xx 7/12 = 36,750`

Hence, interest payable is ₹ 36,750.