Company Accounts

Debentures

Easy

common

Match List-I with List-II

List-I List-II
(A) Debenture of Rs 100 issued at Rs 110. (I) Debenture as collateral security.
(B) Debenture of Rs 100 issued at Rs 100. (II) Debenture issued at Premium
(C) Debenture of Rs 100 issued at Rs 90. (III) Debenture issued at par.
(D) Debenture issued to the lender in addition to some other assets already pledged. (IV) Debenture issued at Discount.

Choose the correct answer from the options given below:

List-I	List-II
(A) Debenture of Rs 100 issued at Rs 110.	(I) Debenture as collateral security.
(B) Debenture of Rs 100 issued at Rs 100.	(II) Debenture issued at Premium
(C) Debenture of Rs 100 issued at Rs 90.	(III) Debenture issued at par.
(D) Debenture issued to the lender in addition to some other assets already pledged.	(IV) Debenture issued at Discount.

(A) - (II), (B) - (III), (C) - (I), (D) - (IV)

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 2

(A) Debenture of Rs 100 issued at Rs 110

Face Value = Rs 100, Issue Price = Rs 110

Since the issue price is higher than the face value, the debenture is issued at premium.

Matches with (II)

(B) Debenture of Rs 100 issued at Rs 100

Face Value = Rs 100, Issue Price = Rs 100

Since the issue price equals the face value, the debenture is issued at par.

Matches with (III)

(C) Debenture of Rs 100 issued at Rs 90

Face Value = Rs 100, Issue Price = Rs 90

Since the issue price is lower than the face value, the debenture is issued at discount.

Matches with (IV)

(D) Debenture issued to the lender in addition to some other assets already pledged

When debentures are issued to a lender along with other assets that are already pledged, they serve as an additional security. This is known as issuing debentures as collateral security. The lender has a claim on both the originally pledged assets and these debentures.

Matches with (I)

Correct matching: (A) - (II), (B) - (III), (C) - (IV), (D) - (I)

Answer: Option 2

2022: 20 Aug Shift 2

Match List I with List II

List I	List II
A. Excess of purchase consideration over value of net assets	I. Issue Debentures as collateral security
B. Excess of net assets over purchase consideration	II. Goodwill
C. Debenture Suspense Account	III. Issue of Debentures for consideration other than cash
D. Assets received against Debentures	IV. Capital Reserve

Choose the correct answer from the options given below:

2023: 11 June Shift 3

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

2026: 21 May Shift 2

"These debentures do not have a specific charge on the assets of the company". Name the type of debenture being highlighted in this statement.

2025: 14 May Shift 2

XYZ Ltd. purchased assets worth Rs. 3,00,000 from Blue Prints Ltd., and took over its liabilities worth Rs. 20,000 for a purchase consideration of Rs. 3,15,000. XYZ Ltd. paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%.

How many debentures would be issued, if debentures were issued at par?

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.

(D) Debentures can not be converted into shares in any case.

Choose the correct answer from the options given below:

2022: 8 Aug Shift 2

Debenture holders are:

Solution

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