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CUET Accountancy 2025 PYQs2 June Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 2 June Shift 2

Debentures

past year questions, Company Accounts, CUET Accountancy 2025 2 June Shift 2

Medium

common

Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 15% but redeemable at premium of 5%, the amount debited to loss on issue of debenture account is.

Solution

✅ Correct Option: 1

Given Information:

  • Face value of debentures = Rs. 1,00,000
  • Issued at 15% discount
  • Redeemable at 5% premium

Loss on Issue of Debentures represents the total capital loss that will be incurred by the company. This includes both the discount given at the time of issue and the premium to be paid at redemption.

Calculating Discount on Issue:

Issue price per debenture = Rs. 100 - 15% of Rs. 100 = Rs. 85

Total discount = Rs. 1,00,000 - Rs. 85,000 = Rs. 15,000

Calculating Premium on Redemption:

Redemption price per debenture = Rs. 100 + 5% of Rs. 100 = Rs. 105

Total premium on redemption = Rs. 1,05,000 - Rs. 1,00,000 = Rs. 5,000

Total Loss on Issue of Debentures:

Loss on Issue of Debentures = Discount on Issue + Premium on Redemption

= Rs. 15,000 + Rs. 5,000 = Rs. 20,000

The company receives only Rs. 85,000 but will have to pay back Rs. 1,05,000 at redemption. The total loss of Rs. 20,000 (the difference between what is received and what will be paid back) is debited to Loss on Issue of Debentures Account.

Related questions:

2022: 16 July Shift 2

Z Ltd issued 15,000, 12% Debentures of Rs.100 each at a premium of 2% redeemable at a premium of 5% In such case:

2025: 31 May Shift 1

Debentures which are transferable by mere delivery are:

2026: 29 May Shift 2

A company took a loan of Rs. 10,00,000 from Punjab National Bank and issued 10% debentures of Rs. 12,00,000 of Rs. 100 each as a collateral security. What will be the journal entry to record this?

2025: 30 May Shift 1

Match List-I with List-II

List-IList-II
(A) These debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.(I) Bearer Debentures
(B) These debentures are those which are payable on the expiry of the specific period either in lump sum or in installments during the lifetime of the company.(II) Zero Coupon Rate Debentures
(C) These debentures do not carry a specific rate of interest.(III) Redeemable Debentures
(D) These debentures are the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures interest on the debentures that is paid to a person who produces the interest coupon attached to such debentures.(IV) Secured Debentures

Choose the correct answer from the options given below:

2026: 6 June Shift 1

Varun Ltd., purchased building worth Rs.1,50,000, machinery worth Rs.1,40,000 and furniture worth Rs.10,000 from Anuj Ltd., and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. Varun Ltd., paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 5%. What will be the amount of goodwill in this case?

2026: 20 May Shift 1

On Bearer debentures, Interest is paid to a person who produces the .................. attached to such debentures?

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