Question:
On 1stApril, 2023, Viya Ltd. issued 20,000, 10% debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ended 31stMarch, 2024 will be :
On 1stApril, 2023, Viya Ltd. issued 20,000, 10% debentures of ₹ 100 each at a premium of 10%. The total amount of interest on debentures for the year ended 31stMarch, 2024 will be :
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Interest on debentures is always calculated on face value unless otherwise stated.
Updated On: Oct 18, 2025
- ₹ 2,000
- ₹ 2,20,000
- ₹ 2,00,000
- ₹ 20,000
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The Correct Option is C
Solution and Explanation
Face value = 20,000 × ₹100 = ₹20,00,000
Interest = 10% of ₹20,00,000 = ₹2,00,000
Interest = 10% of ₹20,00,000 = ₹2,00,000
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