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Please solve this question for me iam preparing for a competitive exam

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ASHA KILLI DEO

ARTICLED ASSISTANT

28 Points Joined October 2009

1. Consider the following– The investment portfolio of a business as on 31-12-2012 stood as follows– (1) 8% Debentures of X Co. Ltd. (Rs. 6,000). Interest payable on 31st March and 30th September. (2) 7% Debentures of Y Co. Ltd. (Rs. 4,000). Interest payable on 30th June and 31st December. (3) 10% Debentures of Z Co. Ltd. (Rs. 9,000). Interest payable on 1st June and 1st December. Amount of interest accrued on the closing date will be– (A) Rs. 335 (B) Rs. 1,025 (C) Rs. 195 (D) Rs. 830

please reply ASAP

Replies (8)

CS Ashish bhal

trainee

53 Points Joined January 2012

If closing date is 31st Dec then it's C 195

Sathish M

Management Accountant

40581 Points Joined June 2010

It would be Option A - Rs. 335

1. 6000*8%*3/12 = 120

2. 4000*7%*6/12 = 140

3. 9000*10%*1/12 = 75

1+2+3= 120+140+75 = 335

CS Ashish bhal

trainee

53 Points Joined January 2012

Debentures of y Co Ltd should not be taken for calculating accrued interest as the closing date is 31st Dec which is the payable date in 2nd debentures

Sivaramakumar

GM-ACCOUNTS

142 Points Joined June 2012

Assuming the financial year opted by the company is from jan 12 to Dec12, interest accrual takes place only for debenture 1 and 3. Hence the answer is 195

shankar.m

CA Final Nov-14

67 Points Joined February 2011

Debenture 1 and 3 will be taken and and would be C 195

Sathish M

Management Accountant

40581 Points Joined June 2010

Yes, the interest payable for Y ltd falls on 31st December and hence no interest stands accrued. Thus, as mentioned by learned members the solution is Option C - Rs. 195.