Please solve this question for me iam preparing for a competitive exam

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1. Consider the following– The investment portfolio of a business as on 31-12-2012 stood as follows– (1) 8% Debentures of X Co. Ltd. (Rs. 6,000). Interest payable on 31st March and 30th September. (2) 7% Debentures of Y Co. Ltd. (Rs. 4,000). Interest payable on 30th June and 31st December. (3) 10% Debentures of Z Co. Ltd. (Rs. 9,000). Interest payable on 1st June and 1st December. Amount of interest accrued on the closing date will be– (A) Rs. 335 (B) Rs. 1,025 (C) Rs. 195 (D) Rs. 830

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Replies (8)
If closing date is 31st Dec then it's C 195

It would be Option A - Rs. 335

 

1. 6000*8%*3/12 = 120

2. 4000*7%*6/12 = 140

3. 9000*10%*1/12 = 75

1+2+3= 120+140+75 = 335

Debentures of y Co Ltd should not be taken for calculating accrued interest as the closing date is 31st Dec which is the payable date in 2nd debentures

Assuming the financial year opted by the company   is from jan 12 to Dec12, interest accrual takes place only for debenture 1 and 3. Hence the answer is 195

 

 

Debenture 1 and 3 will be taken and and would be C 195
Yes, the interest payable for Y ltd falls on 31st December and hence no interest stands accrued. Thus, as mentioned by learned members the solution is Option C - Rs. 195.
Answer is rs. 195
195 is correct answer

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