Question

8. If Rs 5,00,000 9% Debentures are issued for cash, Rs 8,00,000 8% Debentures are
issued for consideration other than cash and Rs 3,00,000 10% Debentures are issued as
Collateral security and tax deduction rate is 10% on interest. Amount charged by the
company to the statement of profit and loss against the finance cost for one year will be:
(a) Rs 1,39,000 (b) Rs 1,09,000
(c) Rs 1,25,100 (d) Rs 98,100

Answer 1

Answer:a Rs 139000

Explanation:



Answer 2

The correct option is (c) Rs 1,25,100.

The amount charged by the company to the statement of profit and loss against the finance cost for one year can be calculated as follows:

• Rs 5,00,000 9% Debentures issued for cash: 500,000 * 0.09 = 45,000
• Rs 8,00,000 8% Debentures issued for consideration other than cash: 800,000 * 0.08 = 64,000
• Rs 3,00,000 10% Debentures issued as Collateral security: 300,000 * 0.1 = 30,000
• Total finance cost: 45,000 + 64,000 + 30,000 = 139,000
• Tax deductions at 10%: (139,000 * 10) / 100 = 13,900
• Amount charged to the statement of profit and loss: 139,000 - 13,900 = 125,100

So, the answer is (c) Rs 1,25,100.

To learn more about debentures from the given link.

https://brainly.in/question/7038800

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