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
Interest on debentures is paid at the coupon rate on the face value of the debentures outstanding.
10% Debentures = ₹12,00,000
Interest on debentures = ₹12,00,000 × 10/100 = ₹1,20,000
NCERT (2026-27 edition):
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