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CUET Accountancy 2026 PYQs13 May Shift 1. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2026 13 May Shift 1

Debentures

past year questions, Company Accounts, CUET Accountancy 2026 13 May Shift 1

Medium

common

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:

Solution

✅ Correct Option: 3

(A) is false. Debentures can be issued to vendors for assets purchased.

(B) is true, because collateral debentures are only a subsidiary security and carry no interest unless the company defaults.

(C) is false. Convertible debentures are redeemed by issuing shares, not cash.

(D) is true, as the extra amount payable on redemption is a capital loss.

Hence (B) and (D) only.

Related questions:

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: 30 May Shift 1

Suvidha Ltd. purchased machinery worth Rs.1,98,000 from Suppliers Ltd. The payment was made by issue of 12% debentures of Rs.100 each. How many debentures will be issued at a 10% discount?

2025: 30 May Shift 2

A company has issued 10% Debentures of Face Value of Rs. 5,00,000 as Collateral Security against Rs. 6,00,000, 12% Bank Loan. What amount of total interest will be paid by company for the whole year:-

2025: 30 May Shift 2

Match List-I with List-II

List-IList-II
Type of DebentureExplanation
(A) Secured Debentures(I) These debentures do not have a specific charge on the assets of the company.
(B) Irredeemable Debentures(II) 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.
(C) Unsecured Debentures(III) It refers to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.
(D) Redeemable Debentures(IV) These debentures are repayable on the winding-up of a company or on the expiry of a long period.

Choose the correct answer from the options given below:

2026: 21 May Shift 1

Debentures which can be transferred by way of delivery and the company does not keep any record of the debentureholders. Interest on debentures is paid to a person who produces the interest coupon attached to such debentures. Identify the type of debenture being discussed in above statement.

2025: 14 May Shift 2

XYZ Ltd. purchased assets worth Rs. 3,00,000 from Blue Prints Ltd., and took over its liabilities worth Rs. 20,000 for a purchase consideration of Rs. 3,15,000. XYZ Ltd. paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%.

How many debentures would be issued, if debentures were issued at par?

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