Question:
Dove Ltd. issued 8,000, 11% debentures of rupee 100 each at a premium of 5%.The total amount of interest on Debentures for one year will be:
Dove Ltd. issued 8,000, 11% debentures of rupee 100 each at a premium of 5%.The total amount of interest on Debentures for one year will be:
Show Hint
To calculate the total interest on debentures, multiply the face value of the debentures by the interest rate, ignoring any premium or discount.
Updated On: Jan 13, 2026
- rupee 80,000
- rupee 92,400
- rupee 88,000
- rupee 880
Hide Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
The total debentures issued = 8,000 debentures of rupee 100 each.
The interest rate = 11%. \[ \text{Total Interest} = \text{Total Value of Debentures} \times \text{Interest Rate} \] \[ \text{Total Interest} = rupee (8,000 \times 100) \times \frac{11}{100} = rupee 88,000 \]
Was this answer helpful?
0
0
Top Questions on Debentures
- Ajanta Ltd. purchased machinery worth Rs 36,00,000 from Sujata Ltd. Ajanta Ltd. paid half the amount to Sujata Ltd. through a bank draft and the balance by issuing 8 debentures of Rs 100 each at a discount of 10.
Pass the necessary journal entries in the books of Ajanta Ltd. for the above transactions. - If a company issues Rs. 1,00,000, 9% debentures of Rs. 100 each at a discount of 5% but redeemable at a premium of 5%, then what amount will be debited to Loss on Issue of Debentures Account?
- CUET (UG) - 2025
- Accountancy
- Debentures
- G.S. Rai company ltd. purchased assets of the book value of Rs. 98,000 from another firm. It was agreed that purchase consideration be paid by issuing 11% debentures of Rs. 100 each. Assume debentures have been issued at discount of 20%. Identify the number of debentures issued by the company to the vendor:
- CUET (UG) - 2025
- Accountancy
- Debentures
- Debenture Application & Allotment A/c ........ Dr. 95,000
Loss on Issue of Debentures A/c ................. Dr. 10,000
\hspace{0.5cm} To 9% Debenture A/c ...................................... 1,00,000
\hspace{0.5cm} To Premium on Redemption of Debentures A/c .... 5,000
On the basis of the above entry, determine the rate of discount at which Rs. 1,00,000, 9% debentures of Rs. 100 each were issued if they were to be redeemed at a premium of 5%.- CUET (UG) - 2025
- Accountancy
- Debentures
- VX Ltd. issued 30,000, 8% debentures of ₹ 100 each at a discount of 10% redeemable at a certain rate of premium. On issue of these debentures, ‘Loss on issue of debentures account’ was debited with ₹ 4,50,000. The amount of premium on redemption of debentures was___.
View More Questions
Questions Asked in CBSE CLASS XII exam
- Find the value of $x$, if \[ \begin{bmatrix} 1 & 3 & 2 \\ 2 & 5 & 1 \\ 15 & 3 & 2 \end{bmatrix} \begin{bmatrix} 1 \\ x \\ 2 \end{bmatrix} = \begin{bmatrix} 0 \\ 0 \\ 0 \end{bmatrix} \]
- Two point charges of \( -5\,\mu C \) and \( 2\,\mu C \) are located in free space at \( (-4\,\text{cm}, 0) \) and \( (6\,\text{cm}, 0) \) respectively.
(a) Calculate the amount of work done to separate the two charges at infinite distance.
(b) If this system of charges was initially kept in an electric field \[ \vec{E} = \frac{A}{r^2}, \text{ where } A = 8 \times 10^4\, \text{N}\,\text{C}^{-1}\,\text{m}^2, \] calculate the electrostatic potential energy of the system.- CBSE CLASS XII - 2025
- Electrostatics
- 4,000 shares of ₹ 10 each were forfeited for non-payment of second and final call money of ₹ 2 per share. The minimum amount that the company must collect at the time of reissue of these shares will be :
- CBSE CLASS XII - 2025
- Accounting for Share Capital
- If $y = a \cos(\log x) + b \sin(\log x)$, then $x^2y'' + xy'1$ is:
- CBSE CLASS XII - 2025
- Continuity and differentiability
A ladder of fixed length \( h \) is to be placed along the wall such that it is free to move along the height of the wall.
Based upon the above information, answer the following questions:(iii) (b) If the foot of the ladder, whose length is 5 m, is being pulled towards the wall such that the rate of decrease of distance \( y \) is \( 2 \, \text{m/s} \), then at what rate is the height on the wall \( x \) increasing when the foot of the ladder is 3 m away from the wall?
- CBSE CLASS XII - 2025
- Application of derivatives
View More Questions