On 1st April, 2024, EE Ltd. issued 3,000, 9% Debentures of ₹ 50 each at a premium of 5%, redeemable at a premium of ₹ 10 per debenture after five years. Interest on the debentures was to be paid on half-yearly basis on 30th September and 31st March. Interest on debentures for the year ended 31st March, 2025 will be:
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Interest on debentures is always calculated on the \textbf{face value} (not on issue price or redemption value). Formula:
\[
\text{Interest} = \text{Number of Debentures} \times \text{Face Value per Debenture} \times \text{Rate of Interest}
\]
Premiums or discounts on issue/redemption do not affect interest calculation!
We need to calculate the interest on debentures for the year ended 31st March, 2025. Step 1: Understand the terms of debentures.
Number of debentures = 3,000
Face value per debenture = ₹ 50
Rate of interest = 9% p.a.
Interest payable half-yearly on 30th Sept and 31st March
Step 2: Calculate the total face value of debentures.
\[
\text{Total Face Value} = 3,000 \times 50 = ₹ 1,50,000
\]
Step 3: Calculate the annual interest.
\[
\text{Annual Interest} = 1,50,000 \times \frac{9}{100} = ₹ 13,500
\]
Step 4: Verify the period.
The debentures were issued on 1st April, 2024. The year ended 31st March, 2025 covers the full year from 1st April, 2024 to 31st March, 2025. Therefore, full year's interest is payable.
\[
\text{Interest for the year} = ₹ 13,500
\]
Step 5: Note about half-yearly payment.
The interest is paid in two installments:
30th Sept, 2024: ₹ 6,750 (for April-Sept)
31st March, 2025: ₹ 6,750 (for Oct-March)
Total = ₹ 13,500
The premium on issue (5%) and redemption premium (₹ 10 per debenture) do not affect the interest calculation. Interest is always calculated on the face value of debentures.
Final Answer: (D) ₹ 13,500
