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Home Questions WPWXY7Y7NU
Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

What will be the interest on debentures for the year ended 31st March 2022, if 800 debentures are issued of ₹100 each at a discount of 5% with an interest rate of 8% at the beginning of the year?

Options:

₹7400

₹6400

₹5500

₹6000

Correct Answer:

₹6400

Explanation:

Debentures = 800 X100 =₹80000
Interest = 80000 X 8/100 = ₹6400
Interest is paid on nominal value.

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