Company Accounts

Debentures

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The number of debentures to be issued to the vendor against purchase of machinery, will be calculated as follows:

Number of debentures to be issued= Amount Payable / Face value

Number of debentures to be issued= Amount Paid / Issue Price

Number of debentures to be issued= Amount Payable / Issue Price

Number of debentures to be issued= Amount Paid / Face value

✅ Correct Option: 3

The vendor is settled for the agreed purchase consideration, and every debenture discharges an amount equal to its issue price, which may be par, premium or discount. Hence number of debentures $=$ Amount Payable $\div$ Issue Price.

2026: 31 May Shift 1

Arrange the following in order in case of issue of debenture at discount.

A. Allotment due

B. Receipt of application money

C. Transfer of discount to Statement of Profit & Loss

D. Allotment of debentures

Choose the correct answer from the options given below:

2023: 11 June Shift 3

Determine the number of Debentures to be issued.

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?

2022: 23 Aug Shift 2

Identify the methods of Redemption of Debenture from the following.

(A) By conversion into shares or new debenture

(B) Purchase in open market

(D) Payment in instalments

(E) Payment in lump-sum

Choose the correct answer from the options given below :

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 -

2025: 13 May Shift 2

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

Debentures have been issued at a discount of:

The number of debentures to be issued to the vendor against purchase of machinery, will be calculated as follows:

Solution

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