A Ltd issued 1 000 10 debentures of Rs 100 each at a premium of 5 What will be the total amount of i...........

General Accounting Principles Accounting For Debentures

A Ltd. issued 1,000, 10% debentures of Rs 100 each at a premium of 5%. What will be the total amount of interest for one year :

10500

10000

5250

5000

A Ltd. issued 1,000, 10% debentures of Rs 100 each at a premium of 5%

1000@debenture Rs.100=Rs.1,00,000

total amount of interest for one year=

Rs. 1,00,000*10%=Rs.10,000

Submit Error

Please explain in detail

Please explain in detail

What about 5% premium

NIHARIKA WALIA

interest is on the face value not on value at premium or discount