CUET Accountancy - Company Accounts - Debentures | Free Questions - Page 5

Q1:

2025: 13 May Shift 1

Company Accounts

>

Debentures

Medium

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:

(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

Q2:

2025: 13 May Shift 1

Company Accounts

>

Debentures

Easy

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

Redeemable

Unsecured

Specific coupon rate

Zero coupon rate

Correct Answer

Option 2

Correct Answer

Explanation

Q3:

2025: 13 May Shift 1

Company Accounts

>

Debentures

Easy

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:

30,000

28,800

32,000

28,000

Correct Answer

Option 1

Correct Answer

Explanation

Q4:

2024

Company Accounts

>

Debentures

Medium

(A) Discount on issue of debentures account is credited

(B) Loss on issue of debentures account is debited

(C) Security premium account is credited

(D) Premium on redemption of debentures account is credited

When debentures are issued at premium and redeemed at premium, the journal entry will have the following combination:

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q5:

2024

Company Accounts

>

Debentures

Medium

(A) Payment to debenture-holders
(B) Creation of DRR
(C) Issue of debentures
(D) Redemption becomes due

Arrange the following in the correct sequence in the context of debenture.

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

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

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

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

Correct Answer

Option 4

Correct Answer

Explanation

Q6:

2023: 20 June Shift 2

Company Accounts

>

Debentures

Medium

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

Issue at premium, Redemption at a premium

Issued at discount, Redemption at discount

Issued at par, Redemption at a premium

Issued at discount, Redemption at par

Correct Answer

Option 2

Correct Answer

Explanation

Q7:

2023: 11 June Shift 3

Company Accounts

>

Debentures

Medium

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 :

(A), (B), and (C) Only

(B), (C), and (D) Only

(C), (D), and (E) Only

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

Correct Answer

Option 1

Correct Answer

Explanation

Q8:

2023: 11 June Shift 3

Company Accounts

>

Debentures

Medium

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

Redemption of Debenture by Payment in Lumpsum

Redemption of Debenture by giving tangible Assets

Redemption of Debenture by payment in instalments

Redemption of Debenture by conversion into shares or new Debentures

Correct Answer

Option 2

Correct Answer

Explanation

Q9:

2023: 11 June Shift 3

Company Accounts

>

Debentures

Medium

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45,00,000. At the time of issue of Debenture they also issued equity Share of Rs. 30,00,000 at 20% premium.

Determine the number of Debentures to be issued.

45,000 Debentures

40,500 Debentures

50,000 Debentures

36,000 Debentures

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2023: 11 June Shift 3

Company Accounts

>

Debentures

Medium

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45,00,000. At the time of issue of Debenture they also issued equity Share of Rs. 30,00,000 at 20% premium.

What will be the amount of premium on Redemption of Debentures.

Rs. 9,00,000

Rs. 10,00,000

Rs. 12,50,000

Rs. 11,25,000

Correct Answer

Option 3

Correct Answer

Explanation

Q11:

2023: 11 June Shift 3

Company Accounts

>

Debentures

Hard

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45,00,000. At the time of issue of Debenture they also issued equity Share of Rs. 30,00,000 at 20% premium.

How much amount is to be debited in statement of profit and Loss to write off loss on Issue of Debentures ?

Rs. 12,50,000

Rs. 17,50,000

Rs. 5,00,000

Rs. 11,50,000

Correct Answer

Option 4

Correct Answer

Explanation

Q12:

2023: 11 June Shift 3

Company Accounts

>

Debentures

Easy

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45,00,000. At the time of issue of Debenture they also issued equity Share of Rs. 30,00,000 at 20% premium.

Debentures that will be redeemed only at the time of winding up of the company are known as :

Redeemable Debentures

Irredeemable Debentures

Non-Convertible Debentures

Zero Coupon Rate Debentures

Correct Answer

Option 2

Correct Answer

Explanation

Q13:

2023: 11 June Shift 3

Company Accounts

>

Debentures

Medium

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45,00,000. At the time of issue of Debenture they also issued equity Share of Rs. 30,00,000 at 20% premium.

Interest payable on the Debentures issued for the year ended Mar, 31st 2023 will be :

Rs. 4,00,000

Rs. 5,40,000

Rs. 6,00,000

Rs. 3,60,000

Correct Answer

Option 1

Correct Answer

Explanation

Q14:

2023: 29 May Shift 2

Company Accounts

>

Debentures

Medium

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?

Rs. 25,00,000

Rs. 45,00,000

Rs. 20,00,000

Rs. 70,00,000

Correct Answer

Option 3

Correct Answer

Explanation

Q15:

2023: 29 May Shift 2

Company Accounts

>

Debentures

Easy

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

Debentures issued to underwriters

Debentures issued for cash

Debentures issued to vendor

Debentures issued as Collateral Security

Correct Answer

Option 4

Correct Answer

Explanation

Q16:

2023: 28 May Shift 1

Company Accounts

>

Debentures

Easy

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 :

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

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

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

(B), (D) and (E) only

Correct Answer

Option 2

Correct Answer

Explanation

Q17:

2023: 28 May Shift 1

Company Accounts

>

Debentures

Easy

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 :

30,000

28,800

32,000

27,693

Correct Answer

Option 1

Correct Answer

Explanation

Q18:

2023: 28 May Shift 1

Company Accounts

>

Debentures

Easy

XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs. 20,00,000 which is raised by issuing 10% Debenture of Rs. 12,00,000 of Rs. 100 issued at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs. 8,00,000 of Rs. 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs. 5,00,000 from PNB against 5% debenture of Rs. 8,00,000 of Rs. 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

XYZ Ltd. issues 10% debentures of Rs. 12,00,000 of Rs. 100 each at a discount of 10% which will be repayable after 6 years. What type of debenture it is ?

Zero Coupon Rate Bonds/Debenture

Redeemable Debentures

Convertible Debenture

Irredeemable Debenture

Correct Answer

Option 2

Correct Answer

Explanation

Q19:

2023: 28 May Shift 1

Company Accounts

>

Debentures

Easy

XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs. 20,00,000 which is raised by issuing 10% Debenture of Rs. 12,00,000 of Rs. 100 issued at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs. 8,00,000 of Rs. 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs. 5,00,000 from PNB against 5% debenture of Rs. 8,00,000 of Rs. 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

XYZ Ltd. issued another category of debenture which are perpetual in nature. What type of debentures they are called :

Irredeemable Debentures

Convertible Debenture

Redeemable Debentures

Bearer Debentures

Correct Answer

Option 1

Correct Answer

Explanation

Q20:

2023: 28 May Shift 1

Company Accounts

>

Debentures

Easy

XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs. 20,00,000 which is raised by issuing 10% Debenture of Rs. 12,00,000 of Rs. 100 issued at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs. 8,00,000 of Rs. 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs. 5,00,000 from PNB against 5% debenture of Rs. 8,00,000 of Rs. 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

While issuing 10% debenture of Rs. 12,00,000 at 10% discount. What amount should be transferred to "Discount on issue of debenture A/c" if all amount is received in one instalment ?

Rs. 10,000

Rs. 12,000

Rs. 1,20,000

Rs. 1,00,000

Correct Answer

Option 3

Correct Answer

Explanation

Q21:

2023: 28 May Shift 1

Company Accounts

>

Debentures

Easy

XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs. 20,00,000 which is raised by issuing 10% Debenture of Rs. 12,00,000 of Rs. 100 issued at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs. 8,00,000 of Rs. 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs. 5,00,000 from PNB against 5% debenture of Rs. 8,00,000 of Rs. 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

If 5% debenture of Rs. 8,00,000 of Rs. 100 were issued at 15% premium. Amount is payable as Rs. 25 on applications, Rs. 50 on allotment and Rs. 40 on 1st and final call. How much amount should be credited to "Security Premium Reserve A/c".

Rs. 1,20,000

Rs. 8,00,000

Rs. 9,20,000

Rs. 1,00,000

Correct Answer

Option 1

Correct Answer

Explanation

Q22:

2023: 28 May Shift 1

Company Accounts

>

Debentures

Easy

XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs. 20,00,000 which is raised by issuing 10% Debenture of Rs. 12,00,000 of Rs. 100 issued at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs. 8,00,000 of Rs. 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs. 5,00,000 from PNB against 5% debenture of Rs. 8,00,000 of Rs. 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

Company raised a loan of Rs. 5,00,000 from PNB against 5% debenture of Rs. 8,00,000 of Rs. 100 each as a collateral security. The "Debenture suspense A/c" will be debited with :

Rs. 5,00,000

Rs. 3,00,000

Rs. 8,00,000

Rs. 13,00,000

Correct Answer

Option 3

Correct Answer

Explanation

Q23:

2022: 30 Aug Shift 2

Company Accounts

>

Debentures

Medium

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:

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

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

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

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

Correct Answer

Option 3

Correct Answer

Explanation

Q24:

2022: 30 Aug Shift 2

Company Accounts

>

Debentures

Easy

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

No Interest payable

Rs. 90,000

Rs. 9000

Rs. 99000

Correct Answer

Option 1

Correct Answer

Explanation

Q25:

2022: 30 Aug Shift 2

Company Accounts

>

Debentures

Medium

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.

4,000

3,500

3,000

2,000

Correct Answer

Option 3

Correct Answer

Explanation

Q26:

2022: 30 Aug Shift 2

Company Accounts

>

Debentures

Easy

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:

A & E only

B & C only

B & E only

C & D only

Correct Answer

Option 3

Correct Answer

Explanation

Q27:

2022: 30 Aug Shift 2

Company Accounts

>

Debentures

Medium

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:

Debited to premium on Redemption of Debenture A/C

Credited to Premium on Redemption of Debentures A/C

Debited to Securities Premium Reserve A/C

Credited to securities premium Reserve A/C

Correct Answer

Option 4

Correct Answer

Explanation

Q28:

2022: 23 Aug Shift 2

Company Accounts

>

Debentures

Medium

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 :

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

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

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

(C), (D) and (E) only

Correct Answer

Option 3

Correct Answer

Explanation

Q29:

2022: 20 Aug Shift 2

Company Accounts

>

Debentures

Medium

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:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q30:

2022: 20 Aug Shift 2

Company Accounts

>

Debentures

Medium

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.

Rs. 35,000 Capital Reserve

Rs. 35,000 Goodwill

Rs. 3,15,000 Goodwill

Rs. 55,000 Goodwill

Correct Answer

Option 2

Correct Answer

Explanation

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

Q1:

Q2:

Q3:

Q4:

Q5:

Q6:

Q7:

Q8:

Q9:

Q10:

Q11:

Q12:

Q13:

Q14:

Q15:

Q16:

Q17:

Q18:

Q19:

Q20:

Q21:

Q22:

Q23:

Q24:

Q25:

Q26:

Q27:

Q28:

Q29:

Q30:

CUET Accountancy Past Year Questions (Topic-Wise)