WorksheetsDebentures 1
Total questions: 10
Worksheet time: 10mins
Debentures are a part of
Shareholders' fund
Borrowed funds
Borrowings from Bank
None of these
Debentures are shown in the balance sheet of a company under the head of
Non current liabilities
Current liabilities
Share Capital
None of these
Debenture holders are
Owners of the company
Lenders of the company
Vendors of the company
Customers of the company
Debenture interest is paid
At a predetermined rate
At variable rate
At a rate based on net profit of the company
At a rate as determined by the company from time to time
At the time issue of debentures, debentures account is
Credited by the amount received
Credited by the issue price of the debentures
Credited by the nominal (face) value of the debentures
None of the above
When debentures are issued at a discount, the discount is written off
After debentures have been redeemed
In the year when debentures are issued
During the life of the debentures
None of these
Interest on debentures is paid on
Amount received on issue
Nominal (face) value
On premium
None of these
Debentures issued as collateral security
Are recorded in the books
Are not recorded in the books
May or may not be recorded in the books
None of these
X ltd. purchased building of Y ltd. for Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of Rs. 20. 10% debentures account is credited with
Rs. 5,20,000
Rs. 5,00,000
Rs. 4,80,000
Rs. 3,20,000
Discount or loss on issue of debentures is written off from
Securities premium reserve
Securities premium reserve (if it exists) and thereafter from statement of profit and loss
Statement of profit and loss
General reserve
