Company Accounts

Debentures

Easy

Debenture holders are:

creditors of the company

customer of the company

owner of the company

none of the above

✅ Correct Option: 1

A debenture is an acknowledgement of debt issued by the company. Debenture holders lend money to the company, receive a fixed rate of interest, and have a prior claim over shareholders at repayment. They are therefore creditors of the company, not owners.

2025: 2 June Shift 2

Debenture suspense is shown in the balance sheet as

2025: 14 May Shift 2

Which situation is not true about Issue of Debentures-

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 ?

2025: 15 May Shift 1

Debenture Application & Allotment A/c Dr. 95,000

Loss on Issue of Debentures A/c Dr. 10,000

To 9% Debenture A/c 1,00,000

To Premium on Redemption of Debentures A/c 5,000

On the basis of the above entry, determine the rate of discount at which Rs. 1,00,000, 9% debentures of Rs. 100 each were issued if they were to be redeemed at a premium of 5%.

2025: 3 June Shift 1

When debentures are issued at par and are redeemable at a premium, the loss on such issue is debited to :

2025: 22 May Shift 2

The debentures which are payable on the expiry of the specific period are

Debenture holders are:

Solution

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