Tariq Fan Manufacturing Company has decided to launch new product of exhaust fan for which funds...

 

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Tariq Fan Manufacturing Company has decided to launch new product of exhaust fan for which funds of Rs. 5,000,000 were need for acquisition of plant, raw material and certain tools. The board of directors decided to issue 10% 2,000 Bonds of Rs. 2,500 each at Rs. 2,550 each as on 01 April 2020 with tenure of 04 years. The interest is payable annually. Required a) b) d) e) f) Accounting entry for issuance of Bonds. Payment of periodic interest on Bonds. Adjustment of amortization of bonds premium based on straight line system against each interest payment. Presentation of bonds and premium in the balance sheet prepared as at 30 June, 2022. Retirement of bonds at maturity. Computation of real rate of interest on these bonds. Tariq Fan Manufacturing Company has decided to launch new product of exhaust fan for which funds of Rs. 5,000,000 were need for acquisition of plant, raw material and certain tools. The board of directors decided to issue 10% 2,000 Bonds of Rs. 2,500 each at Rs. 2,550 each as on 01 April 2020 with tenure of 04 years. The interest is payable annually. Required a) b) d) e) f) Accounting entry for issuance of Bonds. Payment of periodic interest on Bonds. Adjustment of amortization of bonds premium based on straight line system against each interest payment. Presentation of bonds and premium in the balance sheet prepared as at 30 June, 2022. Retirement of bonds at maturity. Computation of real rate of interest on these bonds.

Answer rating: 100% (QA)

Given A trust fund has Rs 30000 that must be invested in two di... View the full answer