Epsilon Ltd had in issue R400 000 6% Debentures as at 31st March 2010 and on 31st Dec. 2010 redeemed R300 000 of these debentures at 10% premium. Interest on debentures were paid annually in arrears on 31st December. No debentures were issued newly. Calculate the interest expense in the year to 31st March 2011: R24000, R 6000, R32500 or R19500

Epsilon Ltd had in issue R400 000 6% Debentures as at 31st March 2010 and on 31st Dec. 2010 redeemed R300 000 of these debentures at 10% premium. Interest on debentures were paid annually in arrears on 31st December. No debentures were issued newly. Calculate the interest expense in the year to 31st March 2011: R24000, R 6000, R32500 or R19500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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