When debentures are issued at premium and redeemed at premium, the journal entry will have the following combination: Option 1: (A), (B) and (D) only Option 2: (A), (B) and (C) only Option 3: (A), (B), (C) and (D) Option 4: (B), (C) and (D) only

The answer is '(B), (C) and (D) only'. View full solution:

CUET Accountancy - When debentures are issued at premium and redeemed at premium, the journal entry will have the following combination: | PYQs + Solutions

CUET Accountancy

Company Accounts

Medium

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

✅ Correct Option: 4

Related questions:

28 May Shift 1

If 5% debenture of Rs. 8,00,000 of Rs. 100 were issued at 15% premium. Amount is payable as Rs. 25 on applications, Rs. 50 on allotment and Rs. 40 on 1st and final call. How much amount should be credited to "Security Premium Reserve A/c".

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%.

23 Aug Shift 2

Identify the methods of Redemption of Debenture from the following.

(A) By conversion into shares or new debenture

(B) Purchase in open market

(D) Payment in instalments

(E) Payment in lump-sum

Choose the correct answer from the options given below :

CUET Accountancy PYQs

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