CUET Accountancy - Company Accounts - Debentures | Free Questions - Page 4

Q1:

2025: 26 May Shift 2

Company Accounts

>

Debentures

Easy

Common

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

Statement of profit and loss.

Debentures applications and allotment account.

Loss on issue of debentures account

Debenture Redemption Reserve

Correct Answer

Option 3

Correct Answer

Explanation

Q2:

2025: 26 May Shift 2

Company Accounts

>

Debentures

Easy

Common

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:

(A) - (IV), (B) - (II), (C) - (III), (D) - (I)

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (III), (B) - (II), (C) - (IV), (D) - (I)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 3

Correct Answer

Explanation

Q3:

2025: 24 May Shift 1

Company Accounts

>

Debentures

Easy

Common

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

2,00,000

1,00,000

1,20,000

2,20,000

Correct Answer

Option 1

Correct Answer

Explanation

Q4:

2025: 24 May Shift 1

Company Accounts

>

Debentures

Medium

Common

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:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation

Q5:

2025: 24 May Shift 1

Company Accounts

>

Debentures

Easy

Common

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) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 1

Correct Answer

Explanation

Q6:

2025: 24 May Shift 1

Company Accounts

>

Debentures

Easy

Common

A debenture which is transferable merely by delivery is:

First debenture

Registered debenture

Bearer debenture

Mortgage debenture

Correct Answer

Option 3

Correct Answer

Explanation

Q7:

2025: 22 May Shift 2

Company Accounts

>

Debentures

Easy

Common

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

Perpetual Debentures

Redeemable Debentures

Zero coupon rate debentures

Specific coupon rate debentures

Correct Answer

Option 2

Correct Answer

Explanation

Q8:

2025: 22 May Shift 2

Company Accounts

>

Debentures

Medium

Common

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:

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (II), (B) - (IV), (C) - (III), (D) - (I)

Correct Answer

Option 3

Correct Answer

Explanation

Q9:

2025: 22 May Shift 2

Company Accounts

>

Debentures

Easy

Common

Debentures can be issued at

(A) Par

(B) Premium

(C) Discount

(D) Transaction value

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation

Q10:

2025: 16 May Shift 1

Company Accounts

>

Debentures

Easy

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:

(A) and (C) only

(A), (C) and (B) only

(A), (B), (C) and (D)

(A), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation

Q11:

2025: 15 May Shift 2

Company Accounts

>

Debentures

Medium

Convertible debentures cannot be issued at a discount if:

They are not to be immediately converted

They are to be immediately converted

Shareholder opts for redemption in cash

Not recited approval from SEBI

Correct Answer

Option 2

Correct Answer

Explanation

Q12:

2025: 15 May Shift 2

Company Accounts

>

Debentures

Medium

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:

(A), (B), (C) and (D)

(A), (C) and (D) only

(A), (B) and (C) only

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation

Q13:

2025: 15 May Shift 2

Company Accounts

>

Debentures

Medium

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

Shareholder A/c Dr.

To Discount on issue of Debentures A/c

Capital reserve A/c Dr.

To Discount on issue of Debentures A/c

Securities Premium Reserve A/c./Statement of Profit and Loss Dr.

To Discount on Issue of Debentures A/c.

Share forfeiture A/c Dr.

To Discount on issue of Debentures A/c

Correct Answer

Option 3

Correct Answer

Explanation

Q14:

2025: 15 May Shift 1

Company Accounts

>

Debentures

Easy

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

1100 debentures

1200 debentures

1225 debentures

1960 debentures

Correct Answer

Option 3

Correct Answer

Explanation

Q15:

2025: 15 May Shift 1

Company Accounts

>

Debentures

Easy

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?

Rs.5,000

Rs.10,000

Rs.15,000

Rs.20,000

Correct Answer

Option 2

Correct Answer

Explanation

Q16:

2025: 15 May Shift 1

Company Accounts

>

Debentures

Medium

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%.

5%

10%

15%

20%

Correct Answer

Option 1

Correct Answer

Explanation

Q17:

2025: 15 May Shift 1

Company Accounts

>

Debentures

Medium

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?

5%

15%

20%

10%

Correct Answer

Option 4

Correct Answer

Explanation

Q18:

2025: 14 May Shift 2

Company Accounts

>

Debentures

Easy

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:

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (II), (B) - (III), (C) - (I), (D) - (IV)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 3

Correct Answer

Explanation

Q19:

2025: 14 May Shift 2

Company Accounts

>

Debentures

Medium

Comprehension:

Answer the next 5 questions from the passage-

XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took overs its liabilities of 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%

Which situation is not true about Issue of Debentures-

Issued at par and redeemable at par

Issued at a premium and redeemable at par

Issued at par and redeemable at a premium

Issued at a discount and redeemable at a discount

Correct Answer

Option 4

Correct Answer

Explanation

Q20:

2025: 14 May Shift 2

Company Accounts

>

Debentures

Medium

Comprehension:

Answer the next 5 questions from the passage-

XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took overs its liabilities of 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%

Which account, and with what amount, will be debited for the excess amount of the net assets over purchase consideration at the time of the purchase of the business by XYZ Ltd,.

Goodwill Rs 35,000

Capital reserve Rs 35,000

Goodwill Rs 25,000

Capital reserve Rs 25,000

Correct Answer

Option 1

Correct Answer

Explanation

Q21:

2025: 14 May Shift 2

Company Accounts

>

Debentures

Medium

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?

3,000

3,150

3,300

3,500

Correct Answer

Option 2

Correct Answer

Explanation

Q22:

2025: 14 May Shift 2

Company Accounts

>

Debentures

Medium

Comprehension:

Answer the next 5 questions from the passage-

XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took overs its liabilities of 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%

Blue Prints Ltd., account will be :

Debited by Rs 3,00,000

Debited by Rs 3,15,000

Credited by Rs 3,00,000

Credited by Rs 3,15,000

Correct Answer

Option 2,4

Correct Answer

Explanation

Q23:

2025: 14 May Shift 2

Company Accounts

>

Debentures

Easy

Comprehension:

Answer the next 5 questions from the passage-

XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took overs its liabilities of 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%

Number of debentures issued are :

2,500

2,800

3,000

3,150

Correct Answer

Option 3

Correct Answer

Explanation

Q24:

2025: 14 May Shift 1

Company Accounts

>

Debentures

Medium

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:

(A), (B) and (D) only

(A), (C) and (E) only

(A), (B), (C) and (E)

(A), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q25:

2025: 14 May Shift 1

Company Accounts

>

Debentures

Easy

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:

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (III), (B) - (I), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 1

Correct Answer

Explanation

Q26:

2025: 13 May Shift 2

Company Accounts

>

Debentures

Easy

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

Statement of profit and loss

Debentures applications and allotment account

Loss on issue of debentures account

Capital Account

Correct Answer

Option 3

Correct Answer

Explanation

Q27:

2025: 13 May Shift 2

Company Accounts

>

Debentures

Easy

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:

15%

10%

5%

4%

Correct Answer

Option 3

Correct Answer

Explanation

Q28:

2025: 13 May Shift 2

Company Accounts

>

Debentures

Medium

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.

Convertible Debentures

Perpetual Debentures

Zero Coupon Rate Debentures

Specific Coupon Rate Debentures

Correct Answer

Option 3

Correct Answer

Explanation

Q29:

2025: 13 May Shift 2

Company Accounts

>

Debentures

Easy

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-

Rs. 15000

Rs. 10,000

Rs. 25,000

Rs. 30,000

Correct Answer

Option 1

Correct Answer

Explanation

Q30:

2025: 13 May Shift 1

Company Accounts

>

Debentures

Easy

Debentures are convertible into which of the following?

Debts

Reserves

Shares

Non-performing assets

Correct Answer

Option 3

Correct Answer

Explanation

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