CA CPT Exam  >  CA CPT Questions  >  On 1st June 2009, Harsh Ltd. issued 4,000 9% ... Start Learning for Free
On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :
  • a)
    Rs. 12,000.
  • b)
    Rs. 18,000.
  • c)
    Rs. 36,000.
  • d)
    Rs. 30,000.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of...
Calculation of Interest Expenditure on Convertible Debentures

Issue of Convertible Debentures
- Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%
- Total amount raised through debentures = 4,000 x 100 x 1.1 = Rs. 4,40,000

Interest Payment Schedule
- Interest payable on September 30 and March 31, every year
- Interest rate = 9% p.a.

Calculation of Interest Expenditure for the Year Ended 31st March 2010
- Interest runs from the date of issue, i.e. 1st June 2009 to 31st March 2010
- Number of days from 1st June 2009 to 30th September 2009 = 121 days
- Number of days from 1st October 2009 to 31st March 2010 = 182 days
- Interest for the year ended 31st March 2010 = (4,000 x 100 x 9%) x (121/365) + (4,000 x 100 x 9%) x (182/365)
- Interest for the year ended 31st March 2010 = Rs. 12,600 + Rs. 19,800
- Interest for the year ended 31st March 2010 = Rs. 32,400

Debiting Interest Expenditure to Profit and Loss Account
- The amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be Rs. 32,400.
Free Test
Community Answer
On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of...
Int. from 1st june to 31st march
= 400000 × 9% × 10/12 = 30000
Explore Courses for CA CPT exam

Similar CA CPT Doubts

On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer?
Question Description
On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer?.
Solutions for On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT. Download more important topics, notes, lectures and mock test series for CA CPT Exam by signing up for free.
Here you can find the meaning of On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice On 1st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2010 will be :a)Rs. 12,000.b)Rs. 18,000.c)Rs. 36,000.d)Rs. 30,000.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA CPT tests.
Explore Courses for CA CPT exam

Top Courses for CA CPT

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