Zoobi Manufacturing Company is planning to introduce a new product for which it requires funds amounting...

 

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Zoobi Manufacturing Company is planning to introduce a new product for which it requires funds amounting to Rs. 3.000 million for purchase of some plant and factory building. A friend of the owner of the company has suggested him to meet funds requirement through issuance of Bonds. Accordingly, on 01 April, 2020 the Company issued 3,000 bonds of Rs. 1,000 each at par value carrying 10% interest payable semiannually over a period of 03 years. Required a) b) c) Record the issuance of Bonds. Record the interest accrued at the end of each financial years and payment of interest as per terms of bond over its life. Presentation of Bonds and its accrued interest at financial year end. Zoobi Manufacturing Company is planning to introduce a new product for which it requires funds amounting to Rs. 3.000 million for purchase of some plant and factory building. A friend of the owner of the company has suggested him to meet funds requirement through issuance of Bonds. Accordingly, on 01 April, 2020 the Company issued 3,000 bonds of Rs. 1,000 each at par value carrying 10% interest payable semiannually over a period of 03 years. Required a) b) c) Record the issuance of Bonds. Record the interest accrued at the end of each financial years and payment of interest as per terms of bond over its life. Presentation of Bonds and its accrued interest at financial year end.

Answer rating: 100% (QA)

Answer a Record the issuance of Bonds On 01 April 2020 3000 bonds of Rs 1000 each were issued at par ... View the full answer