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CUET Accountancy 2025 PYQs13 May Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2025 13 May Shift 2

Debentures

past year questions, Company Accounts, CUET Accountancy 2025 13 May Shift 2

Easy

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-

Solution

✅ Correct Option: 1

Given:

  • Number of debentures = 3,000
  • Face value per debenture = Rs. 100
  • Discount on issue = 5%

The discount on issue of debentures is calculated on the total face value of debentures issued.

Calculating Total Face Value:

Total Face Value = Number of debentures × Face value per debenture

Total Face Value = 3,000 × Rs. 100 = Rs. 3,00,000

Calculating Discount on Issue:

Discount on Issue = Discount Rate × Total Face Value

Discount on Issue = 5100\frac{5}{100} × Rs. 3,00,000

Discount on Issue = Rs. 15,000

The discount on issue of debentures is Rs. 15,000, regardless of the redemption pattern or interest rate. The discount is determined at the time of issue based on the total face value of all debentures issued.

Correct Answer: Option 1 (Rs. 15,000)

Related questions:

2022: 30 Aug Shift 2

Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,40,000 and furniture worth Rs. 10,000 from xyz co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. They paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.

2022: 20 Aug Shift 2

The money received from applicants to whom no debentures have been allotted will be ________

2026: 20 May Shift 1

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

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:

2026: 13 May Shift 1

Which of the following statments are true ?

(A) Debentures cannot be issued for consideration other than cash.

(B) Interest is not paid on the debentures issued as collateral security.

(C) Convertible Debentures will be redeemed by paying cash to the debenture holders.

(D) Premium on redemption of debentures is a loss for the company.

Choose the correct answer from the options given below:

2026: 19 May Shift 1

__________ 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 debentures is paid to a person who produces the interest coupon attached to such debentures

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