Calculate the amount of yearly interest payable on 9% debentures (10,000 debentures of Rs. 100) issued as collateral security.

Depending upon the terms and conditions of issue and redemption of debentures, which of the following situation is not found in practice?

Debentures can be issued at

(A) Par

(B) Premium

(C) Discount

(D) Transaction value

Choose the correct answer from the options given below:

The company purchased plant with a book value of Rs. 1,90,000 from National Victory Company and agreed to pay via issuing 2000, 10% Debentures of Rs. 100 each at a discount of 5%.

Amount that will be credited to 10% Debenture A/c will be:

Select the pair which is true about debentures-

(A) Debenture is a part of owned capital.

(B) The payment of interest on debentures is a charge on the profits of the company.

(C) The debentures cannot be issued at a discount of more than 10% of the face value.

(D) Redeemable debentures are those debentures, which are payable on the expiry of the specific period.

Choose the correct answer from the options given below:

1. (B) and (D) only
2. (A) and (D) only
3. (C) and (D) only
4. (A) and (B) only

Perpetual Debentures are also known as :-

The following are the features of Debentures:

(A) The payment of interest is a charge on profits and is to be paid even if there is no profit.

(B) The debentures, which are issued for a specified period are repayable on the expiry of that period.

(C) If the debentures are generally secured, they carry a fixed or floating charge over the assets of the company.

(D) Debentures can not be converted into shares in any case.

Choose the correct answer from the options given below: