Question:
On 1st April 2023, Veebee Ltd. issued 20,000, 13% debentures of \( ₹ 100 \) each at a discount of 10% redeemable at a premium of 5% after 4 years. Total amount of interest on debentures for the year ending 31st March, 2024 will be :
On 1st April 2023, Veebee Ltd. issued 20,000, 13% debentures of \( ₹ 100 \) each at a discount of 10% redeemable at a premium of 5% after 4 years. Total amount of interest on debentures for the year ending 31st March, 2024 will be :
Show Hint
Interest on debentures is always calculated on the face value, irrespective of issue or redemption conditions.
Updated On: Jul 4, 2025
- \( ₹ 2,00,000 \)
- \( ₹ 2,60,000 \)
- \( ₹ 1,00,000 \)
- \( ₹ 3,00,000 \)
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Understand the components.
Veebee Ltd. issued 20,000 debentures of \( ₹ 100 \) each. Despite being issued at a discount and redeemable at a premium, the interest is always calculated on the face value. Step 2: Calculate face value and interest.
\[ \text{Face value of debentures} = 20,000 \times 100 = ₹ 20,00,000 \] \[ \text{Interest @ 13%} = 13% \times 20,00,000 = ₹ 2,60,000 \] Since debentures were issued on 1st April 2023, the full year's interest is applicable. Final Answer:\ \( \boxed{₹ 2,60,000} \)
Veebee Ltd. issued 20,000 debentures of \( ₹ 100 \) each. Despite being issued at a discount and redeemable at a premium, the interest is always calculated on the face value. Step 2: Calculate face value and interest.
\[ \text{Face value of debentures} = 20,000 \times 100 = ₹ 20,00,000 \] \[ \text{Interest @ 13%} = 13% \times 20,00,000 = ₹ 2,60,000 \] Since debentures were issued on 1st April 2023, the full year's interest is applicable. Final Answer:\ \( \boxed{₹ 2,60,000} \)
Was this answer helpful?
0
0
Top Questions on Debentures
- Balance of Debenture Redemption Reserve is transferred to which account after the redemption of all debentures?
- Moon Ltd. issued 4,000, 10% debentures of ₹ 100 each at a premium of 10% redeemable at par after 5 years.
Pass journal entries in the books of the company for issue of debentures. - Prime Ltd. took over assets of ₹ 6,00,000 and liabilities of ₹ 1,00,000 of Rabi Ltd. for a purchase consideration of ₹ 3,60,000. Prime Ltd. issued 10% debentures of ₹ 100 each at a discount of 10% in full satisfaction of purchase consideration.
Pass necessary journal entries in the books of Prime Ltd. - Delight Ltd. purchased assets worth ₹ 4,00,000 and took over liabilities of ₹ 70,000 of Marvel Ltd. for a purchase consideration of ₹ 3,60,000. Delight Ltd. paid the purchase consideration by issuing 11% debentures of ₹ 100 each at a premium of 20%.
Pass necessary journal entries in the books of Delight Ltd. - Pass necessary journal entries for issue of debentures for the following transactions:
(i) Kiero Ltd. issued 80,000, 9% debentures of ₹ 100 each at par, redeemable at a premium of 10%.
(ii) Naro Ltd. issued 50,000, 10% debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%.
View More Questions
Questions Asked in CBSE CLASS XII exam
- If \( \mathbf{a} \) and \( \mathbf{b} \) are position vectors of two points \( P \) and \( Q \) respectively, then find the position vector of a point \( R \) in \( QP \) produced such that \[ QR = \frac{3}{2} QP. \]
- ‘It is an equity-based investment in a growth-oriented small to medium business to enable the investor to accomplish objectives in return for minority shareholding in the business.’ This investment has to be carefully evaluated and analysed by an entrepreneur to find out the stage at which he/she requires this investment to assist in.
(i) Identify the type of capital discussed in the above lines.
(ii) Explain the three stages included in ‘Early Stage Financing’ if the capital identified in (i) above is required at this stage.- CBSE CLASS XII - 2025
- Business Finance
- ‘An affluent individual who provides capital for a business start-up and early stage companies having a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity.’
(i) Identify the source to raise finance available to an entrepreneur discussed in the above lines.
(ii) State any four features of the source of raising finance discussed in (i) above.- CBSE CLASS XII - 2025
- Business Finance
- ‘Royal Fruit Juice Ltd.’ are the manufacturers of different types of fruit juices. They do not use any artificial flavours in their products. The fixed cost of the production process is Rs. 1,76,000. Given below is information about Mango, Orange and Guava fruit juices.From the above data, calculate the following :
Type of Juice Mango Orange Guava Selling Price (Rs./Litre) 150 135 100 Variable Cost (Rs./Litre) 80 65 60 Sales Mix Percentage 20% 40% 40%
(a) Total weighted average contribution margin per unit.
(b) Break-even point in units of sales mix.
(c) Break-even point (in <) for each type of juice.- CBSE CLASS XII - 2025
- Business Environment
- ‘Good Air Ltd.’ is the manufacturer of different types of electric fans like ceiling fans, table fans, exhaust fans, etc. It wanted to start its operations in the recently electrified rural areas ahead of its competitors. It invested in research and development to adopt new technology so that it could produce energy efficient fans at lower cost. The government was stable for the last many years and was focusing on electrification of rural areas. ‘Good Air Ltd.’ took advantage of this and started its operations. The company complied with health and safety regulations, as well as environmental protection laws, to ensure customer safety. As its policy, the company also assures compensation to its customers in case of an injury or accident due to its fans. Since the disposable income of the people in rural areas was low, the company offered an instalment scheme, making its products more accessible to them. Committed to sustainability, the company ensures that its production causes minimum environmental damage. For this, it focuses on reducing waste by recycling production by-products and using biodegradable packaging materials whenever possible. Quoting lines from the above text, identify five macro environmental factors that the company took into consideration while operating its business.
- CBSE CLASS XII - 2025
- Business Environment
View More Questions