Question

Ram Ltd. has issued 15% Debentures of Rs.20,00,000 at a Discount of 10% on April, 2012. The company pays interest half yearly on June 30th & Dec 31st every year. On March 31s , 2013. The amount shown as interest accrued is ______ a) Rs.2,25,000 b) Rs.75,000 c) Rs.3,00,000 d) Rs.1,50,000

Answer 1

interest is calculated on face value

20,00,000*15%

3,00,000

ans (c)