Direction (Q41.-Q45.) Read the following information carefully and answer the question.
A Limited to

Q: What is the correct answer for CUET UG Accountancy Q41?

The correct answer is C. Fixed obligations typically refer to fixed interest payments on long-term debt.1. Interest on Loan from Punjab National Bank:Loan amount = 10,00,000Interest rate = 12% p.a.Interest on loan = 10,00,000 * 12/100 = 1,20,0002. Interest on 10% Debentures issued for consideration other than cash:Purchase consideration = 2,70,000Debenture face value = 100, Premium = 20% (20)Issue price per debenture = 10

Q: Direction (Q41.-Q45.) Read the following information carefully and answer the question. A Limited took over assets of ₹3,00,000 and liabilities of 10,000 from X and co. Ltd. for an agreed purchase…

The correct answer is C. Fixed obligations typically refer to fixed interest payments on long-term debt.1. Interest on Loan from Punjab National Bank:Loan amount = 10,00,000Interest rate = 12% p.a.Interest on loan = 10,00,000 * 12/100 = 1,20,0002. Interest on 10% Debentures issued for consideration other than cash:Purchase consideration = 2,70,000Debenture face value = 100, Premium = 20% (20)Issue price per debenture = 10

Q: What are the options for this CUET UG Accountancy question?

A. 22,500 · B. 1,20,000 · C. 1,42,500 · D. 2,62,500

Question

Direction (Q41.-Q45.) Read the following information carefully and answer the question.
A Limited took over assets of ₹3,00,000 and liabilities of 10,000 from X and co. Ltd. for an agreed purchase consideration of ₹2,70,000 to be satisfied by issue of 10% debentures of 100 each at a premium of 20%.
The company also took a loan of ₹10,00,000 from Punjab National Bank and issued 10% debentures of ₹12,00,000 of ₹100 each as collateral security. The rate of Interest on loan is 12% p.a.
Q41. Calculate the amount of fixed obligation of the company.
(a) 22,500
(b) 1,20,000
(c) 1,42,500
(d) 2,62,500

FirstInTest · Accepted Answer

Fixed obligations typically refer to fixed interest payments on long-term debt.1. Interest on Loan from Punjab National Bank:Loan amount = 10,00,000Interest rate = 12% p.a.Interest on loan = 10,00,000 * 12/100 = 1,20,0002. Interest on 10% Debentures issued for consideration other than cash:Purchase consideration = 2,70,000Debenture face value = 100, Premium = 20% (20)Issue price per debenture = 100 + 20 = 120Number of Debentures issued = 2,70,000 / 120 = 2,250 debenturesInterest rate on these debentures = 10% p.a.Interest on these debentures = 2,250 * 100 * 10% = 22,500 (Interest is always on face value).Total Fixed Obligation = Interest on Loan + Interest on Debentures= 1,20,000 + 22,500 = 1,42,500.Note: The 10% debentures issued as collateral security for the bank loan (₹12,00,000) do not carry a separate interest obligation to the debenture holders as they are not subscribed by the public for cash. Interest is paid on the bank loan itself.

Answer

22,500

Answer

1,20,000

Answer

1,42,500

Answer

2,62,500

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