Question

On 1^st April, 2024, Vinar Ltd. issued ₹ 5,00,000, 9% debentures of ₹ 100 each at 10% discount. Interest is payable half yearly on 30^th September and 31^st March every year. The amount of interest written off on 31^st March, 2025 was ______.

Options

• ₹ 50,000

• ₹ 25,000

• ₹ 22,500

• ₹ 45,000

Answer 1

On 1^st April, 2024, Vinar Ltd. issued ₹ 5,00,000, 9% debentures of ₹ 100 each at 10% discount. Interest is payable half yearly on 30^th September and 31^st March every year. The amount of interest written off on 31^st March, 2025 was ₹ 45,000.

Explanation:

Face Value of Debentures = ₹ 5,00,000

Annual Interest Rate = 9%

Annual Interest = `5,00,000 xx 9/100`

= 45,000