Read the following facts about shares and debentures.

(A) Both shares and debentures can be issued by a company for raising long term funds.

(B) Both shares and debentures can be issued for consideration other than cash.

(C) Both shares and debentures can be issued at premium

(D) Debentures can be converted into shares and shares can be converted into debentures

(E) Dividend is paid on shares and debentures both

Choose the correct answer from the options given below :

Varun Ltd., purchased building worth Rs.1,50,000, machinery worth Rs.1,40,000 and furniture worth Rs.10,000 from Anuj Ltd., and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. Varun Ltd., paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 5%. What will be the amount of goodwill in this case?

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

Bank A/c Dr. 4,75,000

Loss on issue of debenture A/c Dr. 75,000

To 12% Debentures A/c 5,00,000

To Premium on Redemption of Debenture A/c 50,000

In this case the debentures have been issued at a discount of 5% . What is the rate of premium on redemption of debentures?

From the point of view of Tenure, debentures can be of following types:

(A) Reedemable Debentures

(B) Non-Convertible Debentures

(C) Perpetual Debentures

(D) Registered Debentures

Choose the correct answer from the options given below:

Which of the following debentures do not have a specific charge on the assets of the company.

Blue Prints Ltd., account will be :

Identify the methods of Redemption of Debenture from the following.

(A) By conversion into shares or new debenture

(B) Purchase in open market

(C) Sinking fund

(D) Payment in instalments

(E) Payment in lump-sum

Choose the correct answer from the options given below :