Company Accounts

Debentures

Easy

common

According to section ....... of The Companies Act, 2013 'Debenture' includes debenture inventory, bonds and any other securities of a company whether constituting a charge on the assets of the company or not.

2(3)

3(2)

30(2)

2(30)

✅ Correct Option: 4

According to Section 2(30) of The Companies Act, 2013, 'Debenture' is defined.

Section 2 of the Companies Act, 2013 contains definitions of various terms used throughout the Act. Each definition is given a subsection number in brackets.

Section 2(30) specifically states: "debenture includes debenture stock, bonds and any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not."

The format 2(30) means:

2 → Section number (Definitions section)
(30) → Subsection number (Specific definition of Debenture)

This definition is important as it clarifies that debentures are not limited to traditional debentures only, but encompass a broader range of debt instruments including debenture stock, bonds, and other securities, regardless of whether they create a charge on company assets.

The correct answer is Option 4: 2(30).

2025: 13 May Shift 2

ABC Ltd., Issued 3,000, 14% Debentures of Rs. 100 each at a discount of 5% on April 1, 2023. Interest on these debentures is payable annually on March 31 each year. The debentures are redeemable at par in three equal instalments at the end of the third, fourth and fifth year. Discount on issue of debentures is-

2022: 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 :

2025: 13 May Shift 2

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

Debentures have been issued at a discount of:

2026: 11 May Shift 1

X Ltd. issued 2,000, 10% debentures of Rs. 100 each at a discount of 8% on April 1, 2025. These debentures are redeemable at par after ten years. The company has a balance in Securities Premium Reserve of Rs. 15,000. Calculate the amount of discount to be written off from the Securities Premium Reserve.

2026: 11 May Shift 2

The number of debentures to be issued to the vendor against purchase of machinery, will be calculated as follows:

2026: 29 May Shift 1

Interest on debenture is a ............ against the profit of the company and must be paid whether the company has earned any profit or not.

According to section ....... of The Companies Act, 2013 'Debenture' includes debenture inventory, bonds and any other securities of a company whether constituting a charge on the assets of the company or not.

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