CA Foundation Exam  >  CA Foundation Questions  >  T Ltd. has issued 14% Debentures of Rs. 20,00... Start Learning for Free
T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will be
  • a)
    Rs. 70,000 
  • b)
    Rs. 2,10,000 
  • c)
    Rs. 1,40,000 
  • d)
    Rs. 2,80,000 
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10%...
The question doesnt says when the books are closed. so I'll assumne that the books are closed on 31st march every year
then,
INTEREST =20,00,000 * 14/100 * 3/12 = 70,000

If u assume that the books are closed on 31st dec. every year then the answer will be ZERO
Free Test
Community Answer
T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10%...
Debenture discount reserve in the balance sheet of T Ltd. would be Rs. 20,00,000 * 10% = Rs. 2,00,000.

The debenture discount reserve is created to account for the discount given on the issuance of debentures. It represents a portion of the debenture liability that has not been charged to the profit and loss account.

Since the debentures were issued on April 01, 2004, the debenture discount reserve would have been created on that date. The company pays interest half-yearly on June 30 and December 31 every year, so the debenture discount reserve would not have been reduced or adjusted until March 31, 2006.

Therefore, on March 31, 2006, the amount shown as debenture discount reserve in the balance sheet of T Ltd. would still be Rs. 2,00,000.
Explore Courses for CA Foundation exam
T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer?
Question Description
T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will bea)Rs. 70,000b)Rs. 2,10,000c)Rs. 1,40,000d)Rs. 2,80,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev