Question

34. On May 01, 2016, Y Ltd. issued 7% 40,000 convertible debentures of 100 each at a premium
of 20%. Interest is payable on September 30 and March 31, every year. Assuming that the
interest runs from the date of issue, the amount of interest expenditure debited to profit and loss
account for the year ended March 31, 2017 will be
(a) 2,80,000
(b) * 2,33,333
(c) * 8,36,000
d) 2,56,667​

Answer 1

Answer:

Interest debited to profit &liss account is =

4000000×7%=280000