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CUET Accountancy 2026 PYQs21 May Shift 2. Free, no login required.

Company Accounts

past year questions, CUET Accountancy 2026 21 May Shift 2

Debentures

past year questions, Company Accounts, CUET Accountancy 2026 21 May Shift 2

Easy

common

When debentures are redeemable at a premium, the premium payable on redemption is

Solution

✅ Correct Option: 2

Premium payable on redemption is a liability created at the time of issue. The corresponding debit is taken to Loss on Issue of Debentures A/c, which is a capital loss written off later. It is neither an asset nor a gain.

Related questions:

2025: 24 May Shift 1

A debenture which is transferable merely by delivery is:

2025: 13 May Shift 2

ABC Ltd., Issued 3,000, 14% Debentures of Rs. 100 each at a discount of 5% on April 1, 2023. Interest on these debentures is payable annually on March 31 each year. The debentures are redeemable at par in three equal instalments at the end of the third, fourth and fifth year. Discount on issue of debentures is-

2025: 31 May Shift 1

Which of the following is true about debentures-

(A) Debenture is a part of owned capital.

(B) The payment of interest on debentures is a charge on the profits of the company.

(C) The debentures cannot be issued at a discount of more than 10% of the face value.

(D) Redeemable debentures are those debentures which are payable on the expiry of the specific period.

Choose the correct answer from the options given below:

2026: 23 May Shift 2

Match the LIST-I with LIST-II

LIST-ILIST-II
A.Irredeemable DebenturesI. can be transferred by way of delivery.
B.Zero Coupon Rate DebenturesII. also known as Perpetual Debentures.
C.Bearer DebenturesIII. debentures which can be transferred only by executing a regular transfer deed.
D.Registered DebenturesIV. do not carry a specific rate of interest.

Choose the correct answer from the options given below:

2025: 26 May Shift 2

When debentures are issued at par and are redeemable at a premium, the loss on such issue is debited to :

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:

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