Read the following passage and answer the questions given below-
Abhishek Ltd. issued 5,000 debentures @ 9% p.a. of ₹100 each at a premium of ₹20 payable as follows-
Application- ₹40 including premium of ₹10
Allotment- ₹40 including premium of ₹10
Balance on the first and final call.
Applications were received fully and all amounts were received.
How much interest was payable on the debentures issued for one year?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹45,000.
Total debentures = 5,000
Interest = 9% p.a
Amount of debentures = 5,000 X 100
= ₹5,00,000
Interest = 5,00,000 X 9/100
= ₹45,000