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Question 18 Chapter 10 of +2-Part-1
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18. (Amount of Profits to be Charged) West Ltd. issued 2,000, 10% debentures of Rs. 100 each at par, repayable after 5 years. It was decided to establish a Sinking Fund for their redemption and to invest it in the securities yielding 5% interest p.a. Reference to Sinking Fund Table shows that to get Re. 1 at the end of 5 years Rs. 0.180975 is to be invested. Calculate the amount of profits to be charged each year.
The solution of Question 18 Chapter 10 of +2 Part-1:-
Computation of amount of profit to be charged each year
Amount of annual installment = Sinking fund table figure X Amount payable on redemption
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i.e, 0.180975 Rs. 2,00,000 = ₹ 36,195
It all about Question 18 Chapter 10 of +2-Part-1, If you have any problem please comment below.
Redemption of Debentures – explained with an example
You can also Check out the solved question of other Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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