Sample Paper - Accountancy
1
Balance Sheet (Extract)
31-3-2019
31-3-2020
1,60,000
Equity and liabilities
12% Debentures
2,00,000
Additional Information:
Interest on debentures is paid on half yearly basis on 30th September and 31 March each year.
Debentures were redeemed on 30th September 2019.
How much amount (related to above information) will be shown in Financing Activity for Cash Flow Statement
prepared on 31" March 2020?
A. Outflow '40,000.
B. Inflow 42,600.
C. Outflow 61,600.
D. Outflow 64,000
Answers
Answer:
Redemption of debenture. 40000
Interest on debenture. 21600
outflow of cash. = 61600
Explanation:
rs. 40000 debenture redeemed on 30 sep.
so interest paid on these debenture for 6 months 40000*12/100*6/12= 2400
In debenture rs 160000 interest paid for full year 160000*12/100=19200
toral interest = 19200+2400=21600
Answer:
Total interest = 19200+2400=21600
Explanation:
Redemption of debenture. 40000
Interest on debenture. 21600
outflow of cash. = 61600
Rs. 40000 debenture redeemed on 30 sep.
so interest paid on these debenture for 6 months 40000*12/100*6/12= 2400
In debenture rs 160000 interest paid for full year 160000*12/100=19200
total interest = 19200+2400=21600
A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, they must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.
To learn more about debenture visit
https://brainly.in/question/49461753
https://brainly.in/question/6980991
#SPJ3