CUET Accountancy: Company AccountsDebentures. Free, no login required.

Varun Ltd., purchased building worth Rs.1,50,000, machinery worth Rs.1,40,000 and furniture worth Rs.10,000 from Anuj Ltd., and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. Varun Ltd., paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 5%. What will be the amount of goodwill in this case?

Debentures of Rs. 5,00,000 is issued at a discount of 10% and redeemable at a premium of 10%. What will be the loss on issue of debentures?

Arrange the following in order in case of issue of debenture at discount.

A. Allotment due

B. Receipt of application money

C. Transfer of discount to Statement of Profit & Loss

D. Allotment of debentures

Choose the correct answer from the options given below:

A company took a loan of Rs. 10,00,000 from Punjab National Bank and issued 10% debentures of Rs. 12,00,000 of Rs. 100 each as a collateral security. What will be the journal entry to record this?

__________ 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.

According to Section 2(30) of the Companies Act, 2013, identify the correct statement out of the following:

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.

Interest on debenture is a ............ against the profit of the company and must be paid whether the company has earned any profit or not.

X Ltd. purchased an asset of book value of Rs. 4,00,000 and took over the liability of Rs. 50,000 from Y Ltd. It was agreed that the purchase consideration, settled at Rs. 3,80,000, will be paid by issuing debentures of Rs. 100 each at a discount of 10 % . How many debentures will be issued by X Ltd. to Y Ltd.?

DINKAR Ltd., issued 2,000, 10% debentures of Rs. 100 each on April 01, 2024 at a premium of 10% and redeemable at a premium of 10%. Debenture interest was paid half yearly on September 30 and March 31 and tax deducted at source is 10% for the period ending March 31, 2025. Journal entry for Debenture interest transferred to profit and loss account for the period ending March 31, 2025 will be:

Depending upon the terms and conditions of issue and redemption of debentures, which of the following situation is not found in practice?

From the Point of view of Tenure, Debentures can be:

NT Ltd. purchased machinery worth Rs 3,60,000 from RELY Ltd. The payment is to be made by the issuance of 12% debentures of Rs.100 each at 10% discount. Number of Debentures issued by NT Ltd. are:

Gaurav Ltd issued 600, 8% debentures of Rs. 100 each as collateral security against a Bank loan of Rs. 50,000. Journal Entry for issue of debentures as collateral security will be:

PQ Ltd. purchased assets worth Rs. 38,00,000. It issued debentures of Rs. 100 each at a discount of 5 percent in full satisfaction of the purchase consideration. The number of debentures issued to vendor are:

Which of the following is not correct with regard to debentures:

Match the LIST-I with LIST-II

Choose the correct answer from the options given below:

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

Debentures issued at discount of ______ and redeemable at a premium of ______.

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

"These debentures do not have a specific charge on the assets of the company". Name the type of debenture being highlighted in this statement.

A company issued Rs. 2,00,000, 9% debentures of Rs. 100 each at a discount of 5% repayable at par. Correct Journal Entry at the time of transfer of debenture application money to debentures account will be:

"If the company fails to repay the loan along with interest, the lender is free to receive his money from the sale of the primary security and if the realisable value of the primary security falls short to cover the entire amount, the lender has the right to invoke the benefit of additional security whereby debentures may either be presented for redemption or sold in the open market".

Identify the type of issue of debentures stated in the above statement.

When one company acquires the entire business of other firm and if the amount of debentures issued is more than the amount of the net assets taken over, the difference will be:

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.

Most companies raise long-term funds through debentures. Identify incorrect statements regarding debentures.

(A) Debenture holders enjoy voting rights.

(B) A company may issue different kinds of debentures, like Secured Debentures, Unsecured Debentures, Redeemable Debentures, Irredeemable Debentures, Convertible Debentures, Non-convertible Debentures.

(C) A debenture is a part of the owned capital.

(D) The return on Debenture is known as dividend.

Choose the correct answer from the options given below:

Following Journal entry is to be passed when interest on debentures become due and tax is deducted at source:

Harsh Ltd. purchased assets of the book value of Rs.1,98,000 from Garv Ltd. It was agreed that purchase consideration be paid by issuing 16% debentures of Rs. 100 each at a discount of 10%. The number of debentures issued and journal entry for the same would be:

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)

(B)

(C)

(D)

Choose the correct answer from the options given below:

On Bearer debentures, Interest is paid to a person who produces the .................. attached to such debentures?

H Ltd. purchased machinery worth Rs.99,000 from P Ltd. The payment was made by issue of 12% debentures of Rs.100 each. Pass the necessary journal entries for the issue of debentures when debentures are issued at 10% discount in the books of H Ltd.