WorksheetsISSUE OF DEBENTURES
Total questions: 8
Worksheet time: 4mins
Debenture premium can be used to :
(a) Write off the discount on issue of shares or debentures
(b) Write off the premium on redemption of shares or debentures
(c) Write off capital loss
(d) All of the above
A company issued ₹ 1,00,000 12% debentures of ₹ 100 each. The amount of interest on debentures will be:
(a) ₹ 12,000
(b) ₹ 1,20,000
(c) ₹ 12,00,000
(d) None of these
When debentures are issued as collateral security, which entry has to be passed ?
(a) Debenture Suspense A/c Dr. To Debentures
(b) No entry has to be made
(c) (a) or (b)
(d) None of these
F Ltd. purchased machinery for a book value of ₹ 4,00,000. The consideration was paid by issue of 10% Debentures of ₹ 100 each at a discount of 20%. The Debenture Account will be credited by :
(a) ₹ 4,00,000
(b) ₹ 5,00,000
(c) ₹ 3,20,000
(d) ₹ 4,80,000
Discount on issue of Debentures should be written off:
(a) Out of Securities Premium Account
(b) Out of Capital Profits
(c) Out of Statements of Profit and Loss
(d) In the above order over the period of debentures
Discount on issue of Debentures is in the nature of:
(a) Revenue Loss
(b) Capital Loss
(c) Deferred Revenue Expenditure
(d) None of there
If debentures of ₹ 4,50,000 are issued for the consideration of net assets of ₹ 5,00,000 balance ₹ 50,000 will be credited to:
(a) Profit & Loss A/c
(b) Goodwill A/c
(c) General Reserve A/c
(d) Capital Reserve A/c
Deep Ltd. issue 10,00,000, 7 % debentures of 100 Rs. each at a discount of 4%, redeemable after 5 years at a premium of 6%. Loss issue of debentures is :
(a) ₹ 10,00,000
(b) ₹ 6,00,000
(c) ₹ 16,00,000
(d) ₹ 4,00,000
