Company Accounts

Debentures

Medium

common

According to Section 2(30) of the Companies Act, 2013, identify the correct statement out of the following:

'Debenture' includes Debenture Inventory, Bonds and any other securities of a company whether constituting a charge on the assets of the company or not.

Bonds are an instrument of acknowledgment of debt.

Companies can buy back their own shares.

The application money while issuing the share capital should be at least 5% of the face value of the share.

✅ Correct Option: 1

Section 2(30) defines debenture inclusively: it covers debenture stock, bonds and other instruments evidencing debt, whether or not secured by a charge on the company's assets. Option 1 reproduces this definition. The other statements may be true in general company law but none of them is the content of Section 2(30).

2026: 24 May Shift 1

NT Ltd. purchased machinery worth Rs 3,60,000 from RELY Ltd. The payment is to be made by the issuance of 12% debentures of Rs.100 each at 10% discount. Number of Debentures issued by NT Ltd. are:

2026: 6 June Shift 1

Debentures of Rs. 5,00,000 is issued at a discount of 10% and redeemable at a premium of 10%. What will be the loss on issue of debentures?

2026: 24 May Shift 1

Depending upon the terms and conditions of issue and redemption of debentures, which of the following situation is not found in practice?

2025: 27 May Shift 1

X Limited Issued 10,000, 12% debentures of Rs. 100 each payable Rs. 40 on application and Rs. 60 on allotment. The public applied for 14,000 debentures. Applications for 9,000 debentures were accepted in full, applications for 2,000 debentures were allotted 1,000 debentures and the remaining applications, were rejected. All money was duly received. 12% Debenture Application A/c will be credited with -

2026: 21 May Shift 1

Following Journal entry is to be passed when interest on debentures become due and tax is deducted at source:

2022: 30 Aug Shift 2

Match List I with List II

	LIST I: Basis of Debenture		LIST II: Types of Debenture
A.	Tenure	I.	Zero coupon rate
B.	Interest rate point of view	II.	Irredemable
C.	Security	III.	Registration
D.	Bearer	IV.	Secured

Choose the correct answer from the options given below:

According to Section 2(30) of the Companies Act, 2013, identify the correct statement out of the following:

Solution

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