On the basis of the following information, answer the question :
|
Particulars |
Amount (Rs.) |
|
Share Capital : |
|
|
Equity share capital (Rs. 10 each) |
12,00,000 |
|
12% Preference share capital |
3,00,000 |
|
Reserves & Surplus |
5,00,000 |
|
10% Debentures |
12,00,000 |
|
Current Liabilities |
3,00,000 |
|
Fixed Assets |
28,00,000 |
|
Current Assets |
7,00,000 |
|
Net profit after tax as per Statement of |
|
|
Profit & Loss |
4,50,000 |
|
Tax |
1,50,000 |
|
Market Price of the Share |
34 |
Interest on Debentures will be :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) - ₹ 1,20,000.
Debenture = 12,00,000
Interest rate = 10%
Interest = 12,00,000 x 10/100
= 1,20,000