Plzz solve the query..related to debenture..

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Q. On may01,2003 , Y ltd issued 7%,40,000 convertible debentures of Rs 100 each at a premium of 20% . Interest is payable on Sep 30 and march 31, every yeAR. aSSUMING THAT INTEREST RUNS FROM THE DATE OF ISSUE, THE AMOUNT OF INTEREST EXPENDITURE to profit and loss a/c for the year ended March 31,2004 will be:

Q P.ltd issued 10,000, 12% debenture of Rs 100 each at a premium of 10% , which are reedemable after 10 years at a premium of 20%. The amount of loss on redemption of debenture to be written off every year will be :

(pls providde solution)

Thank you :)

Replies (1)

1)

40000*₹100=7%=280000*5/12=116667   (for sept.30 )

                             = 280000*6/12=140000   ( for mach 31)

Interst expenditure is ( 116667 + 140000 ) = 256667

 

2)

20%-10%=10%

1000*100=1000000*10%=100000/10=10000

Loss on redemption of  debenture to written off every year ₹10,000


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