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Question
On 1st April, 2021, Bhim Ltd. issued 2,000, 5% Debentures of ₹ 100 each as follows:
| (a) For cash at a discount of 5% | ₹ 80,000 (Nominal) |
| (b) To a vendor for ₹ 60,000 in satisfaction of his claim | ₹ 70,000 (Nominal) |
| (c) To Bankers for a loan of ₹ 40,000 as collateral security | ₹ 50,000 (Nominal) |
The interest on these debentures was to be paid annually on 31st March, every year, by the company.
You are required to calculate interest on these debentures payable by the company on 31st March, 2022.
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Solution
Value of debentures on which interest is to be calculated = ₹ 80,000 + ₹ 70,000
= ₹ 1,50,000
Interest on debentures = `₹ 1,50,000 xx 5/100`
= ₹ 7,500
Interest on debentures payable by the company on 31st March, 2022 is ₹ 7,500.
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