Question

rajeshree Ltd.hold 14% debentures of the face value of 5000 in RJ Ltd interest is payable on30th june and 31st December every year. the debentures were purchased on 1st July 2017 accounts are closed on 31st March every year. the accrued interest on 31st March,2018 was ____​

Answer 1

Answer:

175

Explanation:

Answer 2

•Given:

Rajeshree purchased debentures of face value of 5000 on 1 July 2017.

interest payable twice in year i.e. 30th june and 31st December.

•To find:

•total holding period from 1 July 2017 to 31 March 2018 is 9 months.

• last interest was paid at 31 December 2017.

• remaining accrued interest is for 3 months interest i.e. 1 January 2018 to 31 March 2018.

•so accrued interest

=14% of 5000×3÷12

=175

•Solution:

Accrued interest=175