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

In case debentures were issued as collateral security for taking loan from ABC Bank. Choose the correct journal entry for cancellation of debentures as collateral security on repayment of bank loan.

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

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Manubhai Patel Company Limited purchased assets of the book value of Rs. 12,00,000 from another company and agreed to make the payment of purchase consideration by issuing 10% debentures of Rs. 100 each at 150% premium. Find the number of debentures issued?

Mehak Ltd. took a loan of Rs. 30,00,000 from a bank against primary security worth Rs. 40,00,000 and issued 4,000, 6% debentures of Rs. 100 each as a collateral security. The company, again after one year, took a loan of Rs. 50,00,000 from the bank against the plant as primary security and deposited 6,000, 6% debentures of Rs. 100 each as collateral security.

What is the amount of debenture suspense account in the balance sheet?

Manik Ltd. issued 10,000, 8% debentures of Rs. 100 each at a discount of 10% redeemable at a premium of 10%. The issue was subscribed and the amount was duly received. The company had a balance of Rs. 70,000 in securities premium reserve on that date. On this date, it also issued 1,00,000, equity shares of Rs. 10 each, also at a premium of Rs. 1 per share. Issue was also fully subscribed. Find the amount to be debited in the Statement of Profit and Loss while writting off Loss on Issue of Debentures A/c.

__________ 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 debentures is paid to a person who produces the interest coupon attached to such debentures

XYZ 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. Calculate the amount received at the time of allotment.

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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?

When debentures are issued at discount and redeemable at a premium, ___________ account will be _________ for combined capital loss of issue and redemption of debentures.

Interest is not payable/provided on _______________.

9% Debentures of Rs. 100 each are issued at 5% discount and redeemable at 8% premium, which of the following account will be credited, at the time of issue?

Observe the below given Journal Entry :-

Debentures are :-

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Which of the following statments are true ?

(A) Debentures cannot be issued for consideration other than cash.

(B) Interest is not paid on the debentures issued as collateral security.

(C) Convertible Debentures will be redeemed by paying cash to the debenture holders.

(D) Premium on redemption of debentures is a loss for the company.

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

On May 01, 2025, Kaur Ltd. issued 10,000, 8% debentures of Rs. 100 each at a discount of 10% redeemable at a premium of 10%. The issue was fully subscribed and the amount was duly received. Calculate the amount of loss on issue of debentures.

The number of debentures to be issued to the vendor against purchase of machinery, will be calculated as follows:

Debenture Application & Allotment A/c Dr. 210,000

Loss on Issue of Debentures A/c Dr. 10,000

To 9% Debenture A/c 2,00,000

To Premium on Redemption of Debentures A/c 10,000

To Securities Premium Reserve A/c 10,000

(Debenture application money transferred to debentures account)

Accountant has passed the above journal entry. Identify the correct situation of terms and conditions of issue and redemption of debentures,

Discount on issue of debentures to be written off within (A)............ months of the balance sheet date or the period of operating cycle is shown under 'Other Current Assets' and the part which is to be written off after (B)........... months of balance sheet is shown under 'Other Non-Current Assets'.

Suppose debentures are issued for consideration other than cash, debentures may:

A. Not be issued at discount

B. Be issued at par

C. Be issued at a premium

D. Be issued at a discount

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

Calculate the rate at which debentures have been issued at a discount.

X Ltd issued Rs. 5,00,000, 9% debentures of Rs. 100 each at a premium of 5% and these debentures are redeemable at a premium of 5%. What amount should be debited to Loss on Issue of Debenture Account?

When a company purchases assets from vendors and, instead of making payment in cash, issues debentures for payment, this type of issuance of debentures is known as ?

X Ltd. issued 2,000, 10% debentures of Rs. 100 each at a discount of 8% on April 1, 2025. These debentures are redeemable at par after ten years. The company has a balance in Securities Premium Reserve of Rs. 15,000. Calculate the amount of discount to be written off from the Securities Premium Reserve.

XYG Company Ltd. purchased assets with a book value of Rs. 99,000 from another firm. It was agreed that purchase consideration should be paid by issuing 11% debentures of Rs. 100 each at a premium of 10%. Calculate the number of debentures to be issued.

Debentures which are transferable by mere delivery are:

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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.

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