Multiple Choice Questions on On 1st April 2007 Sunrise Limited issued 5 000 8 debentures of Rs 100 each at a discount of 5 What w........... for UPSC EPFO Exam Preparation

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Multiple Choice Questions

On 1st April 2007 Sunrise Limited issued 5 000 8 debentures of Rs 100 each at a discount of 5 What w...........

General Accounting Principles Accounting For Debentures
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    On 1st April 2007, Sunrise Limited issued 5,000, 8% debentures of Rs 100 each at a discount of 5%. What will be the total amount of interest for the year ending 31st March 2008? .

    Rs 38000

    Incorrect Answer

    Rs 42000

    Incorrect Answer

    Rs 40000

    Correct Answer

    Rs 25000

    Incorrect Answer
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    Explanation:

    A Ltd. issued 5,000, 8% debentures of Rs 100 each at a discount of 5%

    5000@debenture Rs.100=Rs.5,00,000

    total amount of interest for one year=

     Rs. 5,00,000*8%=Rs.40,000

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    Mallikarjun

    There is mention of 5% discount so we take 95rs for debenture?

    0 0 reply

    Ankur sharma

    Interest is calculated on face value that is 100 not the discounted value 95

     0 0 reply
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