Company Accounts

Debentures

Easy

Identify those debentures on which no interest will be paid/provided.

Debentures issued to underwriters

Debentures issued for cash

Debentures issued to vendor

Debentures issued as Collateral Security

✅ Correct Option: 4

Debentures issued as collateral security are issued as an additional security for a loan. They are not a real borrowing in themselves, and no interest is paid on them. Interest is paid only on the underlying loan. On all other debentures mentioned, interest is normally paid.

2026: 13 May Shift 1

Which of the following statments are true ?

(A) Debentures cannot be issued for consideration other than cash.

(B) Interest is not paid on the debentures issued as collateral security.

(D) Premium on redemption of debentures is a loss for the company.

Choose the correct answer from the options given below:

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%.

2022: 30 Aug Shift 2

Match List I with List II

	LIST I: Basis of Debenture		LIST II: Types of Debenture
A.	Tenure	I.	Zero coupon rate
B.	Interest rate point of view	II.	Irredemable
C.	Security	III.	Registration
D.	Bearer	IV.	Secured

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Perpetual Debentures are also known as :-

2026: 29 May Shift 1

X Ltd. purchased an asset of book value of Rs. 4,00,000 and took over the liability of Rs. 50,000 from Y Ltd. It was agreed that the purchase consideration, settled at Rs. 3,80,000, will be paid by issuing debentures of Rs. 100 each at a discount of 10 % . How many debentures will be issued by X Ltd. to Y Ltd.?

2026: 13 May Shift 2

Match List-I with List-II.

List-I	List-II
(A) Discount on reissue of Shares	(I) Securities Premium Account
(B) Premium on redemption of Debentures	(II) Capital Reserve Account
(C) Premium on issue of Debentures	(III) Share Forfeiture Account
(D) Balance of Share Forfeiture Account	(IV) Loss on Issue of Debenture Account

Choose the correct answer from the options given below:

Identify those debentures on which no interest will be paid/provided.

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)