Question

On 1st April, 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹ 100 each at a discount of 10%. The total amount of interest due on debentures for the year ending 31st March, 2023 will be ______.

Options

• ₹ 2,70,000.

• ₹ 3,00,000.

• ₹ 27,000.

• ₹ 30,000.

Answer 1

On 1st April, 2022, Mega Ltd. issued 30,000, 10% Debentures of ₹ 100 each at a discount of 10%. The total amount of interest due on debentures for the year ending 31st March, 2023 will be ₹ 3,00,000.

Explanation:

30,000 × ₹ 100 × 10% = ₹ 3,00,000

Since the debentures were issued on 1st April, interest is payable for the full year.