CUET Accountancy Company Accounts > Debentures PYQs

Debentures which are transferable by mere delivery are:

Match List-I with List-II | List-I | List-II | |---|---| | (Type of Debentures) | (Characteristic of Debenture) | | (A) Secured Debentures | (I) do not have a specific charge on assets of the company | | (B) Redeemable Debentures | (II) do not carry a specific rate of interest | | (C) Zero Coupon Rate Debentures | (III) are payable on the expiry of the specific period | | (D) Unsecured Debentures | (IV) a charge is created on the assets of the company | Choose the correct answer from the options given below:

The following are the features of Debentures: (A) The payment of interest is a charge on profits and is to be paid even if there is no profit. (B) The debentures, which are issued for a specified period are repayable on the expiry of that period. (C) If the debentures are generally secured, they carry a fixed or floating charge over the assets of the company. (D) Debentures can not be converted into shares in any case. Choose the correct answer from the options given below:

The following are the features of Debenture: (A) Debentures can be converted into shares if the terms of issue are so provided, and in that case these are known as convertible debentures. (B) Debentures are generally secured and carry a fixed or floating charge over the assets of the company. (C) The rate of interest on debentures may vary from year to year depending upon the profits of the company. (D) The debentures are issued for a specified period and repayable on the expiry of that period. Choose the correct answer from the options given below:

In the case of __________ the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures.

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

The following are the features of Debentures: (A) The payment of interest is a charge on profits and is to be paid even if there is no profit. (B) The debentures, which are issued for a specified period are repayable on the expiry of that period. (C) If the debentures are generally secured, they carry a fixed or floating charge over the assets of the company. (D) Debentures can not be converted into shares in any case. Choose the correct answer from the options given below:

Issue of 8% debentures is shown under which sub-head in the balance sheet of a company:

Which among the following 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 is paid to a person who produces this interest coupon attached to such debentures?

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

Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 15% but redeemable at premium of 5%, the amount debited to loss on issue of debenture account is.

Debenture suspense is shown in the balance sheet as

Choose the correct statement:-

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

Match List-I with List-II | List-I | List-II | |---|---| | (A) Redeemable Debentures | (I) The company does not give any undertaking for the repayment of money borrowed by issuing such debentures | | (B) Convertible Debentures | (II) Which are payable on the expiry of the specific period either in lump sum or in installments during the life time of the company. | | (C) Irredeemable Debentures | (III) Which are convertible into equity shares or in any other security either at the option of the company or the debenture holders. | | (D) Unsecured Debentures | (IV) These do not have a specific charge on the assets of the company. | Choose the correct answer from the options given below:

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:

Debentures which are transferable by mere delivery are:

A company has issued 10% Debentures of Face Value of Rs. 5,00,000 as Collateral Security against Rs. 6,00,000, 12% Bank Loan. What amount of total interest will be paid by company for the whole year:-

Match List-I with List-II | List-I | List-II | |---|---| | Type of Debenture | Explanation | | (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:

Perpetual Debentures are also known as:-

Suvidha Ltd. purchased machinery worth Rs.1,98,000 from Suppliers Ltd. The payment was made by issue of 12% debentures of Rs.100 each. How many debentures will be issued at a 10% discount?

Which of the following are the correct statements regarding debentures/debentures interest. (A) The payment of interest on debentures is a charge on the profits of the company. (B) Redeemable debentures are those debentures which are payable on the expiry of the specific period. (C) Debentures cannot be converted into shares. (D) Perpetual debentures are also known as irredeemable debentures. Choose the correct answer from the options given below:

Perpetual Debentures are also known as :-

Match List-I with List-II | List-I | List-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:

Which is not a type of Debenture :-

Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 15% but redeemable at premium of 5%, the amount debited to loss on issue of debenture account is.

Which of the following is not a way of issuing debentures-

Select the pair which 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: 1. (B) and (D) only 2. (A) and (D) only 3. (C) and (D) only 4. (A) and (B) only

X Limited Issued 10,000, 12% debentures of Rs. 100 each payable Rs. 40 on application and Rs. 60 on allotment. The public applied for 14,000 debentures. Applications for 9,000 debentures were accepted in full, applications for 2,000 debentures were allotted 1,000 debentures and the remaining applications, were rejected. All money was duly received. 12% Debenture Application A/c will be credited with -

According to section ....... of The Companies Act, 2013 'Debenture' includes debenture inventory, bonds and any other securities of a company whether constituting a charge on the assets of the company or not.

Match List-I with List-II | List-I | List-II | |---|---| | (A) Debenture of Rs 100 issued at Rs 110. | (I) Debenture as collateral security. | | (B) Debenture of Rs 100 issued at Rs 100. | (II) Debenture issued at Premium | | (C) Debenture of Rs 100 issued at Rs 90. | (III) Debenture issued at par. | | (D) Debenture issued to the lender in addition to some other assets already pledged. | (IV) Debenture issued at Discount. | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Redeemable Debentures | (I) the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures | | (B) Convertible Debentures | (II) these debentures are issued with a specified rate of interest | | (C) Specific Coupon Rate Debentures | (III) which are convertible into equity shares or in any other security either at the option of the company or the debentureholders | | (D) Bearer Debentures | (IV) which are payable on the expiry of the specific period either in lump sum or in instalments during the life time of the company. | Choose the correct answer from the options given below:

Blue Prints Ltd., purchased building worth Rs.1,50,000, machinery worth Rs.1,40,000 and furniture worth Rs.10,000 from XYZ Co., and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. Blue Prints Ltd., paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 5%. Number of debentures issued are-

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

Match List-I with List-II | List-I | List-II | |---|---| | (A) Unregistered Debentures | (I) Perpetual Debentures | | (B) Unsecured Debentures | (II) Naked Debentures | | (C) Secured Debentures | (III) Bearer Debentures | | (D) Irredeemable Debentures | (IV) Mortgage Debentures | Choose the correct answer from the options given below:

ABC Industries Ltd. issued 2,000, 10% Debentures of Rs.100 each, at a premium of Rs. 10 per debenture payable as follows: On application Rs. 50 On allotment Rs. 60 The debentures were fully subscribed, and all money was duly received. The amount of long-term borrowings on the balance sheet will be

Which of the following statements about debentures is FALSE? (A) Debenture is a part of owned capital. (B) Debentures cannot be converted into shares. (C) Redeemable debentures are those debentures, which are payable on the expiry of the specific period. (D) Debentures cannot be issued at a premium. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | Type of Debenture | Meaning | | (A) Redeemable Debenture | (I) Payable on the expiry of the specific period either in lump sum or in installments during the lifetime of the company. | | (B) Perpetual Debenture | (II) Company does not give any undertaking for the repayment of money borrowed by issuing such debentures. | | (C) Specific Coupon Rate Debenture | (III) Issued with a specified rate of interest, which is called the coupon rate. | | (D) Bearer Debenture | (IV) Can be transferred by way of delivery and the company does not keep any record of the debenture. | Choose the correct answer from the options given below:

A debenture which is transferable merely by delivery is:

The debentures which are payable on the expiry of the specific period are

Match List-I with List-II | List-I | List-II | |---|---| | (Particulars) | (Treatment) | | (A) Issue of debentures as collateral security | (I) Vendor Account will be credited | | (B) Issue of debenture to Public | (II) Debenture Suspense Account will be debited | | (C) Issue of debentures to vendor for purchase of an Asset | (III) Statement of Profit and Loss will be debited | | (D) Writting off Discount/Loss on Issue of Debentures | (IV) Bank Account will be debited | Choose the correct answer from the options given below:

Debentures can be issued at (A) Par (B) Premium (C) Discount (D) Transaction value Choose the correct answer from the options given below:

From the point of view of Tenure, debentures can be of following types: (A) Reedemable Debentures (B) Non-Convertible Debentures (C) Perpetual Debentures (D) Registered Debentures Choose the correct answer from the options given below:

Convertible debentures cannot be issued at a discount if:

Which of the following will be included in case debenture's are issued to vendor at a discount for purchase consideration other than cash? (A) % Debenture A/c is credited (B) Vendor A/c is debited (C) Discount on Issue of Debenture A/c is debited (D) Securities Premium Reserve A/c is credited Choose the correct answer from the options given below:

To write off Discount on issue of debentures following entry is made

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

If a company issue Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 5% but redeemable at premium of 5% then what amount will be debited to Loss on Issue of Debentures Account?

Debenture Application & Allotment A/c Dr. 95,000 Loss on Issue of Debentures A/c Dr. 10,000 To 9% Debenture A/c 1,00,000 To Premium on Redemption of Debentures A/c 5,000 On the basis of the above entry, determine the rate of discount at which Rs. 1,00,000, 9% debentures of Rs. 100 each were issued if they were to be redeemed at a premium of 5%.

The following journal entry appears in the books of X Co. Ltd. Bank A/c Dr. 4,75,000 Loss on issue of debenture A/c Dr. 75,000 To 12% Debentures A/c 5,00,000 To Premium on Redemption of Debenture A/c 50,000 In this case the debentures have been issued at a discount of 5% . What is the rate of premium on redemption of debentures?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Unsecured Debentures | (I) These debentures are issued with a specified rate of interest. | | (B) Redeemable Debentures | (II) These debentures do not have a specific charge on the assets of the company. | | (C) Specific Coupon Rate Debentures | (III) These are those which are payable on the expiry of the specific period either in lump sum or in instalments during the life-time of the company. | | (D) Bearer Debentures | (IV) The debentures which can be transferred by way of delivery and the company does not keep any record of the debentures. | Choose the correct answer from the options given below:

XYZ Ltd. purchased assets worth Rs. 3,00,000 from Blue Prints Ltd., and took over its liabilities worth Rs. 20,000 for a purchase consideration of Rs. 3,15,000. XYZ Ltd. paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%. How many debentures would be issued, if debentures were issued at par?

Which combination of following statements are Incorrect (False) 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) Debentures cannot be converted into shares. (E) Redeemable debentures are those debentures, which are payable on the expiry of the specific period. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Secured Debentures | (I) Which are payable on the expiry of the specific period either in lump sum or in instalments during the life time of the company. | | (B) Unsecured Debentures | (II) Debentures where a charge is created on the assets of the company for the purpose of payment in case of default. | | (C) Redeemable Debentures | (III) These debentures are repayable on the winding-up of a company or on the expiry of a long period. | | (D) Irredeemable Debentures | (IV) Debentures do not have a specific charge on the assets of the company. | Choose the correct answer from the options given below:

When debentures are issued at par and redeemable at a premium, the premium payable on redemption is debited to:

The following journal entry appears in the books of X Co. Ltd. Bank A/c Dr. 4,75,000 Loss on issue of debenture A/c Dr. 75,000 To 12% Debentures A/c 5,00,000 To Premium on Redemption of Debenture A/c 50,000 Debentures have been issued at a discount of:

Debentures are issued at a discount. In which of the following the difference between their nominal value and the issue price is treated as the amount of interest.

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-

Debentures are convertible into which of the following?

Which statements are wrong about debentures? (A) Debenture is a part of owned capital. (B) The debentures cannot be issued at a discount of more than 10% of the face value. (C) Debentures cannot be converted into shares. (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:

Which of the following debentures do not have a specific charge on the assets of the company.

X Co. Ltd. purchased assets worth Rs. 28,80,000. It issued debentures of Rs. 100 each at a discount of 4 % in full satisfaction of the purchase consideration. The number of debentures issued to vendors is:

Which of the following option regarding issue and redemption of debenture is not possible in general?

Read the following facts about shares and debentures. (A) Both shares and debentures can be issued by a company for raising long term funds. (B) Both shares and debentures can be issued for consideration other than cash. (C) Both shares and debentures can be issued at premium (D) Debentures can be converted into shares and shares can be converted into debentures (E) Dividend is paid on shares and debentures both Choose the correct answer from the options given below :

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

On 1st July/22, Centaur Ltd. issued Rs. 25,00,000 8% debentures of Rs. 100 each as collateral security to first Level Bank against loan dues of Rs. 20,00,000. How much amount will be shown in the Balance sheet?

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

Debentures issued for consideration other than cash includes, debentures : (A) Issued to bank as additional security (B) Issued to vendor (C) Issued to Public (D) Issued to creditor (E) Issued for cash Choose the correct answer from the options given below :

AB&Co. purchased assets worth Rs. 28,80,000 from vendor. It issued debentures of Rs. 100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendor is :

Match List I with List II | | LIST I: Basis of Debenture | | LIST II: Types of Debenture | |---|---|---|---| | A. | Tenure | I. | Zero coupon rate | | B. | Interest rate point of view | II. | Irredemable | | C. | Security | III. | Registration | | D. | Bearer | IV. | Secured | Choose the correct answer from the options given below:

Calculate the amount of yearly interest payable on 9% debentures (10,000 debentures of Rs. 100) issued as collateral security.

Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,40,000 and furniture worth Rs. 10,000 from xyz co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. They paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.

What are different types of debentures from the view point of registration A. Convertible B. Bearer C. Redeemable D. Secured E. Registered Choose the correct answer from the options given below:

When debentures are issued at premium with the term of redeeming them at par. The amount of premium received at the time of issue will be:

Identify the methods of Redemption of Debenture from the following. (A) By conversion into shares or new debenture (B) Purchase in open market (C) Sinking fund (D) Payment in instalments (E) Payment in lump-sum Choose the correct answer from the options given below :

Match List I with List II | List I | List II | | --- | --- | | A. Excess of purchase consideration over value of net assets | I. Issue Debentures as collateral security | | B. Excess of net assets over purchase consideration | II. Goodwill | | C. Debenture Suspense Account | III. Issue of Debentures for consideration other than cash | | D. Assets received against Debentures | IV. Capital Reserve | Choose the correct answer from the options given below:

Blue Prints Ltd. purchased a building worth Rs. 1,50,000, Machinery worth Rs. 1,40,000 and Furniture worth Rs. 10,000 from XYZ Co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. Calculate the Goodwill/Capital Reserve to be recorded by Blue Print Ltd.

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

The company purchased plant with a book value of Rs. 1,90,000 from National Victory Company and agreed to pay via issuing 2000, 10% Debentures of Rs. 100 each at a discount of 5%. Amount that will be credited to 10% Debenture A/c will be:

The money received from applicants to whom no debentures have been allotted will be ________

When own debentures are cancelled, any profit on cancellation is transferred to:

After the debentures are redeemed, the balance in the Sinking Fund Account is transferred to:

Debenture holders are:

The following journal entry is recorded in the books of RST Ltd. on issue of debentures : Bank a/c Dr 18,00,000 Loss on issue of Debentures a/c Dr 6,00,000 To 14% Debentures 20,00,000 To Premium on Redemption of Debentunes 4,00,000 Debentures have been issued at a discount of :

Z Ltd issued 15,000, 12% Debentures of Rs.100 each at a premium of 2% redeemable at a premium of 5% In such case:

X Ltd. purchased assets from Y Ltd. for Rs.98,10,000. X Ltd. issued 12% Debentures of Rs.100 each at 10% discount against the payment. The number of debentures issued to Y Ltd. is:

Loss on issue of Debenture is a _______

Discount on Issue of Debentures A. Is not a capital gain B. Can be written off in any year C. Can be written off from securities premium Reserve D. Can be written off from General Reserve Choose the correct answer from the options given below:

From Coupon Rate Point of view, Debentures are classified into:

When the number of Debentures applied for is more than the number of debentures offered to public, the issue is said to be: