Company Accounts

Debentures

Easy

common

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.

Registered Debentures

Bearer Debentures

Convertible Debentures

Secured Debentures

✅ Correct Option: 2

Transferability by mere delivery, no register of holders, and interest paid against detachable coupons are the defining features of bearer debentures. Registered debentures are transferable only through a proper transfer deed and their holders are recorded by the company; convertible and secured refer to conversion rights and charge on assets respectively.

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:

2026: 13 May Shift 2

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?

2026: 20 May Shift 1

A Limited issued 5000, 10% debentures of Rs. 100 each, at a premium of Rs. 10 per debenture payable as follows:

On application Rs. 25, On allotment Rs. 45 (including premium), On first and final call Rs. 40.

The debentures were fully subscribed and all money was duly received.

Select the correct journal entries related to the above case from the following.

(A)

Particulars	Dr. Amount	Cr. Amount
10% Debenture Allotment A/c Dr.	2,25,000
To 10% Debentures A/c		1,75,000
To Securities Premium Reserve A/c		50,000

(B)

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Bank A/c Dr.		1,25,000
	To 10% Debenture Application A/c			1,25,000

(C)

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Bank A/c Dr.		2,00,000
	To 10% Debenture First & Final Call A/c			2,00,000

(D)

Date	Particulars	L.F.	Dr. Amount	Cr. Amount
	Bank A/c Dr.		2,20,000
	To 10% Debenture Allotment A/c			2,20,000

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

2023: 28 May Shift 1

XYZ Ltd. issues 10% debentures of Rs. 12,00,000 of Rs. 100 each at a discount of 10% which will be repayable after 6 years. What type of debenture it is ?

2023: 11 June Shift 3

What will be the amount of premium on Redemption of Debentures.

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.

Solution

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