Company Accounts

Debentures

Easy

common

Which of the following is a written instrument acknowledging a debt under the common seal of the company?

Debenture

Equity Share

Preference share

Bank Draft

✅ Correct Option: 1

A debenture is defined as a written acknowledgement of debt issued by a company under its common seal, normally containing the terms of repayment of principal and payment of interest.

Equity and preference shares represent ownership, not debt, and a bank draft is a payment instrument issued by a bank rather than a company borrowing instrument.

2025: 24 May Shift 1

Which of the following statements about debentures is FALSE?

(A) Debenture is a part of owned capital.

(B) Debentures cannot be converted into shares.

(D) Debentures cannot be issued at a premium.

Choose the correct answer from the options given below:

2025: 2 June Shift 2

Discount on issue of 8% debentures is shown in the balance sheet as

2025: 22 May Shift 2

Debentures can be issued at

(A) Par

(B) Premium

(D) Transaction value

Choose the correct answer from the options given below:

2022: 20 Aug Shift 2

Which A/c is credited for transfer of interest on Debenture Redemption Fund Investment?

2026: 29 May Shift 1

Premium on redemption is a liability for a company payable in the future. It is a provision and is shown under the head non-current liabilities under the sub-head __________ until debentures are redeemed.

2023: 11 June Shift 3

Redemption of Debenture can be done by many ways. Identify the wrong option.

Which of the following is a written instrument acknowledging a debt under the common seal of the company?

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)