Company Accounts

Debentures

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When a company purchases assets from vendors and, instead of making payment in cash, issues debentures for payment, this type of issuance of debentures is known as ?

Debentures issued for consideration other than cash

Debentures issued as collateral security

Debentures issued for raising share capital

Debentures issued for exchanging assets

✅ Correct Option: 1

Where the purchase consideration for assets is discharged by allotting debentures rather than paying money, the debentures are said to be issued for consideration other than cash. Collateral issue is different, since those debentures are only a secondary security for a loan and no purchase is involved.

2025: 24 May Shift 1

ABC Industries Ltd. issued 2,000, 10% Debentures of Rs.100 each, at a premium of Rs. 10 per debenture payable as follows: On application Rs. 50 On allotment Rs. 60 The debentures were fully subscribed, and all money was duly received. The amount of long-term borrowings on the balance sheet will be

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

2025: 31 May Shift 1

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:

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.

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-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:

2023: 11 June Shift 3

Interest payable on the Debentures issued for the year ended Mar, 31st 2023 will be :

When a company purchases assets from vendors and, instead of making payment in cash, issues debentures for payment, this type of issuance of debentures is known as ?

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