AfterBoards Logo
Skip to main contentSkip to solution

CUET Accountancy 2025 PYQs27 May Shift 1. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 27 May Shift 1

Debentures

past year questions, Company Accounts, CUET Accountancy 2025 27 May Shift 1

Easy

common

Which of the following is not a way of issuing debentures-

Solution

✅ Correct Option: 2

Debentures can be issued in three ways based on their issue price relative to their face value:

At Par: When debentures are issued at a price equal to their face value. For example, a debenture of ₹100 issued at ₹100.

At Premium: When debentures are issued at a price higher than their face value. For example, a debenture of ₹100 issued at ₹105. The excess amount (₹5) is called premium and is credited to Securities Premium Reserve.

At Discount: When debentures are issued at a price lower than their face value. For example, a debenture of ₹100 issued at ₹95. The shortfall (₹5) is called discount and is debited to Discount on Issue of Debentures account.

"Issue of Debenture at capital" is not a recognized method or terminology in accounting. This option appears to be either a typographical error or a distractor, as there is no such concept in the books of accounts for issuing debentures.

The correct answer is Option 2 as it does not represent any valid method of issuing debentures.

Related questions:

2026: 13 May Shift 1

Observe the below given Journal Entry :-

DateParticularsDr. ₹Cr. ₹
Debenture Application & Allotment A/c Dr.4,70,000
Loss on Issue of Debenture A/c Dr.70,000
To 8 % Debenture A/c5,00,000
To Premium on Redemption of Debenture A/c40,000

Debentures are :-

2025: 14 May Shift 2

Blue Prints Ltd., account will be :

2026: 12 May Shift 1

On May 01, 2025, Kaur Ltd. issued 10,000, 8% debentures of Rs. 100 each at a discount of 10% redeemable at a premium of 10%. The issue was fully subscribed and the amount was duly received. Calculate the amount of loss on issue of debentures.

2025: 4 June Shift 2

Match List-I with List-II

List-IList-II
(Type of Debentures)(Characteristic of Debenture)
(A) Secured Debentures(I) do not have a specific charge on assets of the company
(B) Redeemable Debentures(II) do not carry a specific rate of interest
(C) Zero Coupon Rate Debentures(III) are payable on the expiry of the specific period
(D) Unsecured Debentures(IV) a charge is created on the assets of the company

Choose the correct answer from the options given below:

2026: 20 May Shift 1

Which of the following is a written instrument acknowledging a debt under the common seal of the company?

2025: 14 May Shift 1

Which combination of following statements are Incorrect (False) about debentures-

(A) Debenture is a part of owned capital.

(B) The payment of interest on debentures is a charge on the profits of the company.

(C) The debentures cannot be issued at a discount of more than 10% of the face value.

(D) Debentures cannot be converted into shares.

(E) Redeemable debentures are those debentures, which are payable on the expiry of the specific period.

Choose the correct answer from the options given below:

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question

CUET Accountancy Past Year Questions (Topic-Wise)