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Question
On 1st April, 2023, Saya Ltd. issued 7,000, 9% Debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ending 31st March, 2024 will be ______.
Options
₹ 70,000.
₹ 63,000.
₹ 90,000.
₹ 35,000.
MCQ
Fill in the Blanks
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Solution
On 1st April, 2023, Saya Ltd. issued 7,000, 9% Debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ending 31st March, 2024 will be ₹ 63,000.
Explanation:
Interest on debentures is calculated on their face value:
7,000 × ₹ 100 × 9% = ₹ 63,000
Since the debentures were issued on 1st April, interest is payable for the full year.
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