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Question
On 1st May, 2025, Kranti Ltd. issued 6%, 10,000 convertible debentures of ₹ 100 each at a premium of 20%. Interest is payable on 30th September and 31st March every year. Interest Account for the year ended 31st March, 2026 will be debited by
Options
₹ 66,000
₹ 7,200
₹ 60,000
₹ 55,000
MCQ
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Solution
₹ 55,000
Explanation:
Interest = ₹ 10,00,000 × 6% × `11/12`
= ₹ 55,000.
Interest is calculated from 1st May 2025 to 31st March 2026, i.e., 11 months.
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