CUET Accountancy 2025 30 May Shift 2 PYQs

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

In this case the debentures have been issued at a discount of 5% . What is the rate of premium on redemption of debentures?

Which of the following is true 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) Redeemable debentures are those debentures which are payable on the expiry of the specific period.

Choose the correct answer from the options given below:

Match List-I with List-II

List-I	List-II
(A) Redeemable Debentures	(I) The company does not give any undertaking for the repayment of money borrowed by issuing such debentures
(B) Convertible Debentures	(II) Which are payable on the expiry of the specific period either in lump sum or in installments during the life time of the company.
(C) Irredeemable Debentures	(III) Which are convertible into equity shares or in any other security either at the option of the company or the debenture holders.
(D) Unsecured Debentures	(IV) These do not have a specific charge on the assets of the company.

Choose the correct answer from the options given below: