Question:medium
On 1st April 2023, Veebee Ltd. issued 20,000, 13% debentures of \( ₹ 100 \) each at a discount of 10% redeemable at a premium of 5% after 4 years. Total amount of interest on debentures for the year ending 31st March, 2024 will be :
On 1st April 2023, Veebee Ltd. issued 20,000, 13% debentures of \( ₹ 100 \) each at a discount of 10% redeemable at a premium of 5% after 4 years. Total amount of interest on debentures for the year ending 31st March, 2024 will be :
Show Hint
Interest on debentures is always calculated on the face value, irrespective of issue or redemption conditions.
Updated On: Jan 14, 2026
- \( ₹ 2,00,000 \)
- \( ₹ 2,60,000 \)
- \( ₹ 1,00,000 \)
- \( ₹ 3,00,000 \)
Show Solution
The Correct Option is B
Solution and Explanation
Step 1: Understand the components.
Veebee Ltd. issued 20,000 debentures, each with a face value of ₹ 100. Interest is calculated on the face value, regardless of whether the debentures were issued at a discount or redeemed at a premium.
Step 2: Calculate face value and interest.
\[\text{Face value of debentures} = 20,000 \times 100 = ₹ 20,00,000\]\[\text{Interest @ 13%} = 13\% \times 20,00,000 = ₹ 2,60,000\]As the debentures were issued on April 1st, 2023, the full year's interest is applicable.
Final Answer:
\( \boxed{₹ 2,60,000} \)
Veebee Ltd. issued 20,000 debentures, each with a face value of ₹ 100. Interest is calculated on the face value, regardless of whether the debentures were issued at a discount or redeemed at a premium.
Step 2: Calculate face value and interest.
\[\text{Face value of debentures} = 20,000 \times 100 = ₹ 20,00,000\]\[\text{Interest @ 13%} = 13\% \times 20,00,000 = ₹ 2,60,000\]As the debentures were issued on April 1st, 2023, the full year's interest is applicable.
Final Answer:
\( \boxed{₹ 2,60,000} \)
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