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CUET Accountancy 2023 PYQs11 June Shift 3. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2023 11 June Shift 3

Debentures

past year questions, Company Accounts, CUET Accountancy 2023 11 June Shift 3

Hard

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45,00,000. At the time of issue of Debenture they also issued equity Share of Rs. 30,00,000 at 20% premium.

How much amount is to be debited in statement of profit and Loss to write off loss on Issue of Debentures ?

Solution

✅ Correct Option: 4

Total Loss on Issue = Discount on Issue + Premium on Redemption = (50,000 times 10) + (50,000 times 25) = 5,00,000 + 12,50,000 = 17,50,000.

Securities Premium Reserve available = 30,00,000 times 20 percent = 6,00,000.

Amount debited to Statement of P&L = 17,50,000 - 6,00,000 = 11,50,000.

More from this set:

Question 46

Determine the number of Debentures to be issued.

Question 47

What will be the amount of premium on Redemption of Debentures.

Question 49

Debentures that will be redeemed only at the time of winding up of the company are known as :

Question 50

Interest payable on the Debentures issued for the year ended Mar, 31st 2023 will be :

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CUET Accountancy Past Year Questions (Topic-Wise)