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CUET Accountancy 2022 PYQs15 July Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2022 15 July Shift 2

Debentures

past year questions, Company Accounts, CUET Accountancy 2022 15 July Shift 2

Hard

Discount on Issue of Debentures

A. Is not a capital gain

B. Can be written off in any year

C. Can be written off from securities premium Reserve

D. Can be written off from General Reserve

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 4

Discount on issue of debentures is a capital loss, hence statement A (not a capital gain) is correct. Section 52 of the Companies Act allows securities premium to be used to write off such discount, so C is correct. The discount is typically written off systematically over the life of debentures rather than arbitrarily in any year, so B is not fully correct. D (writing off from General Reserve) is not the prescribed practice. Therefore only A and C are correct.

Related questions:

2022: 20 Aug Shift 2

The money received from applicants to whom no debentures have been allotted will be ________

2026: 29 May Shift 2

__________ debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.

2022: 8 Aug Shift 2

When own debentures are cancelled, any profit on cancellation is transferred to:

2026: 11 May Shift 1

When a company purchases assets from vendors and, instead of making payment in cash, issues debentures for payment, this type of issuance of debentures is known as ?

2026: 11 May Shift 1

The following journal entry appears in the books of XYZ Co. Ltd.

ParticularsDr. (Rs.)Cr. (Rs.)
Bank A/cDr.4,80,000
Loss on issue of debentures A/cDr.1,50,000
To 12% Debentures A/c6,00,000
To Premium on Redemption of Debenture A/c30,000

Calculate the rate at which debentures have been issued at a discount.

2026: 11 May Shift 1

XYG Company Ltd. purchased assets with a book value of Rs. 99,000 from another firm. It was agreed that purchase consideration should be paid by issuing 11% debentures of Rs. 100 each at a premium of 10%. Calculate the number of debentures to be issued.

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CUET Accountancy Past Year Questions (Topic-Wise)