A company issued 1,00,000 12% debentures

CUET Preparation Today

Start Free Mocks

Home Questions 47SMD2JUJG

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

A company issued 1,00,000 12% debentures of ₹ 100 each. The amount of interest on debentures will be:

Options:

₹ 12,000

₹ 1,20,000

₹ 12,00,000

₹ None of the above

Correct Answer:

₹ 12,00,000

Explanation:

Interest on debentures = 1,00,00,000*12/100=12,00,000