A Company purchased 8% bonds at a cost of Rs. 12,00,000 (face value Rs. 10,00,000) on 1^st January 2003. Half yearly interest is payable on this investment on 30^th June and 31^st December each year. The company closes its accounts on 31^st March 2003. The amount of accured interest shown in profit and loss account for the year ended is:

A. Rs. 40,000

B. Rs. 60,000

C. Rs. 20,000

D. Rs. 80,000

Answer: Option C