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CUET Accountancy 2025 PYQs26 May Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 26 May Shift 2

Debentures

past year questions, Company Accounts, CUET Accountancy 2025 26 May Shift 2

Easy

common

Match List-I with List-II

List-IList-II
(A) Redeemable Debentures(I) the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures
(B) Convertible Debentures(II) these debentures are issued with a specified rate of interest
(C) Specific Coupon Rate Debentures(III) which are convertible into equity shares or in any other security either at the option of the company or the debentureholders
(D) Bearer Debentures(IV) which are payable on the expiry of the specific period either in lump sum or in instalments during the life time of the company.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Understanding the characteristics of each type of debenture:

Redeemable Debentures are debentures that will be repaid by the company after a specific period. The repayment can happen either as a lump sum at maturity or in instalments over the debenture's lifetime. This matches with definition (IV).

Convertible Debentures give the holder (or sometimes the company) an option to convert the debentures into equity shares or other securities at a predetermined rate and time. This matches with definition (III).

Specific Coupon Rate Debentures are issued with a fixed, predetermined rate of interest that remains constant throughout the debenture's life. This matches with definition (II).

Bearer Debentures are negotiable instruments that can be transferred simply by physical delivery, similar to currency notes. The company does not maintain any register of holders, and whoever possesses the debenture certificate is considered the owner. This matches with definition (I).

The correct matching is:

  • (A) → (IV)
  • (B) → (III)
  • (C) → (II)
  • (D) → (I)

Option 1 is correct.

Related questions:

2023: 28 May Shift 1

While issuing 10% debenture of Rs. 12,00,000 at 10% discount. What amount should be transferred to "Discount on issue of debenture A/c" if all amount is received in one instalment ?

2026: 24 May Shift 1

NT Ltd. purchased machinery worth Rs 3,60,000 from RELY Ltd. The payment is to be made by the issuance of 12% debentures of Rs.100 each at 10% discount. Number of Debentures issued by NT Ltd. are:

2022: 30 Aug Shift 2

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

2025: 4 June Shift 2

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:

2026: 21 May Shift 1

Harsh Ltd. purchased assets of the book value of Rs.1,98,000 from Garv Ltd. It was agreed that purchase consideration be paid by issuing 16% debentures of Rs. 100 each at a discount of 10%. The number of debentures issued and journal entry for the same would be:

2026: 29 May Shift 1

Premium on redemption is a liability for a company payable in the future. It is a provision and is shown under the head non-current liabilities under the sub-head __________ until debentures are redeemed.

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