Pls answer na !
Q. There is a 12 % debentures (current year value = 100000 and previous year value is 60000) and in additional information it has been stated that "debentures were issued on 01.04.2015".. so, is there anything to do with that adjustment or straight away can we calculate issue as 40000 and interest as 12000 and post it in respective accounts...??

Dear Student

Debenture issue date is given as 01.04.2015, means on the day of starting of financial year, therefore here debenture interest shall be calculated for the full year for the cash flow statement prepared for the year ending 31.03.2016.

Therefore Interest = 1,00,000 x 12% = 12,000/-

Hence your way of doing straightly is correct.


Regards


 

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we calculate on previous year
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If debentures were issued in the begining of the year, so we have to calculate interest on Rs.100,000 . But if debentures were issued at the end of the year then we have to calculate interest on rs.60,000.
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Yes u can do this straightly.
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What are you looking for?