Company account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2012 On 1 May 2008, Y Ltd issued 7% 40000 convertible Debentures of rs.100 each at a premium of 20%. Interest is payable on Sep 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to P & L A/c for the year ended 31 March 2009?

Guest

Guest (Expert)

19 September 2012 Interest payable on 30.9.2008- 40000*100*7/100*5/12 = 116666.67/-
Interest payable on 31.3.2009-
40000*100*7/100*6/12 = 140000/-
Total Interest = 256666.67/-