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CUET Accountancy 2026 PYQs13 May Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2026 13 May Shift 2

Debentures

past year questions, Company Accounts, CUET Accountancy 2026 13 May Shift 2

Medium

common

Sindoor Ltd. issued Rs. 75,00,000, 9% debentures of Rs. 100 each as collateral security to State Bank of India against loan of Rs. 80,00,000. What amount will be shown in the long term borrowings in Balance Sheet in this case?

Solution

✅ Correct Option: 3

Debentures issued as collateral security are only a secondary or standby security and create no separate liability. Under the first method no entry is passed and only the loan appears. Under the second method the debentures are shown with Debenture Suspense deducted, so the net amount is nil.

Either way, Long Term Borrowings shows the bank loan of 80,00,00080{,}00{,}000.

Related questions:

2026: 19 May Shift 1

Manik Ltd. issued 10,000, 8% debentures of Rs. 100 each at a discount of 10% redeemable at a premium of 10%. The issue was subscribed and the amount was duly received. The company had a balance of Rs. 70,000 in securities premium reserve on that date. On this date, it also issued 1,00,000, equity shares of Rs. 10 each, also at a premium of Rs. 1 per share. Issue was also fully subscribed. Find the amount to be debited in the Statement of Profit and Loss while writting off Loss on Issue of Debentures A/c.

2025: 30 May Shift 1

Match List-I with List-II

List-IList-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: 29 May Shift 2

Identify those debentures on which no interest will be paid/provided.

2025: 15 May Shift 1

G.S. Rai company ltd. purchased assets of the book value of Rs. 98,000 from another firm. It was agreed that purchase consideration be paid by issuing 11% debentures of Rs. 100 each. Assume debentures have been issued at discount of 20%

Identify the number of debentures issued by the company to the vendor

2026: 11 May Shift 1

The following journal entry appears in the books of XYZ Co. Ltd.

ParticularsDr. (Rs.)Cr. (Rs.)
Bank A/cDr.4,80,000
Loss on issue of debentures A/cDr.1,50,000
To 12% Debentures A/c6,00,000
To Premium on Redemption of Debenture A/c30,000

Calculate the rate at which debentures have been issued at a discount.

2026: 19 May Shift 1

Mehak Ltd. took a loan of Rs. 30,00,000 from a bank against primary security worth Rs. 40,00,000 and issued 4,000, 6% debentures of Rs. 100 each as a collateral security. The company, again after one year, took a loan of Rs. 50,00,000 from the bank against the plant as primary security and deposited 6,000, 6% debentures of Rs. 100 each as collateral security.

What is the amount of debenture suspense account in the balance sheet?

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