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WorksheetsDEBENTURES CLASS QUIZ
Total questions: 25
Worksheet time: 13mins
When debentures are to be redeemed at premium an extra entry has to be made at the time of issue of debentures, which a/c should be credited in this entry?
a) Loss on issue of debentures
b) Premium on redemption of debenture
c) Bank
d) Debenture holder’s a/c
Premium on Redemption of Debentures Account is:
nominal
personal
real
none of the above
X Ltd. acquired assets of ₹20 lakhs and took over creditors of ₹20 thousandfrom Y Ltd. X Ltd. issued 8% debentures of ₹200 each at a discount of 10%as purchase consideration. Number of debentures issued will be:
11000
9000
10000
8500
X Ltd. purchased a building for ₹60,00,000 payable as 20% in Cash and balanceby allotment of 8% debentures of ₹500 each at a premium of 20%. Numberof debentures issued will be:
9600
5000
8000
10000
If Vendors are issued debentures of ₹80,000 in consideration of net assetsof ₹1,00,000, the balance of ₹20,000 will be credited to:
st of profit and loss
goodwill
capital reserve
debenture
A Ltd. issued 1,000, 10% debentures of ₹100 each at a premium of 5%. Whatwill be the total amount of interest for one year?
10000
1000
10500
1050
On 1st April 2007, Sunrise Limited issued 5,000, 8% Debentures of ₹100 eachat a discount of 5%. What will be the total amount of interest for the yearending 31st March 2022?
38000
26000
42000
40000
‘A’ Limited purchased the assets from ‘B’ Limited for ₹5,40,000. ‘A’ Limitedissued 10% debentures of ₹100 each at 20% premium against the payment. Thenumber of debentures received by ‘B’ Limited will be:
4500
450
450000
450000
Globe Ltd. issues 20,000, 9% debentures of ? 100 each at a discount of 5% redeemable at the end of 5 years at a premium of 6%. For what amount ‘Loss on Issue of Debentures Account’ will be debited?
220000
22000
200000
150000
A Ltd . issued 2,000; 9% Debentures of ₹ 100 each on the following terms:₹20 on applications ;₹ 20 on allotment ; ₹ 30 on first call ; ₹ 30 on final call.The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected
amount to be credited in 9%debenture allotment at the time of application
40000
4000
400
none of these
ABC Ltd. issued 40,000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures . Debentures were allotted and excess application money was refunded.
what is amount that is refunded ?
2000000
20000
200000
all of the above
The owner of the debenture is qualified for
voting rights
fixed divident
fixed rate interest
all of these
On issue of debentures as a collateral security, which account is credited?
debenture suspense ac
bank ac
debenture ac
bank loan ac
When debentures of ₹1,00,000 are issued as Collateral Security against a loan of ₹1,50,000, the entry for issue of debentures will be :
(A) Credit Debentures ₹1,50,000 and debit bank A/c ₹1,50,000
(B) Debit Debenture Suspense A/c ₹1,00,000 and Credit Bank A/c ₹1,00,000
(C) Debit Debenture Suspense A/c ₹1,00,000 and Credit Debentures A/c ₹1,00,000.
(D) Debit Cash A/c ₹1,50,000 and Credit Bank A/c ₹1,50,000
Loss on Issue of Debentures is written off:
(A) In the year of the issue of debentures
(B) During the life of the debentures
(C) Within 3 years of the issue of debentures
(D) In the year of redemption of debentures
(A)
(B)
(C)
(D)
Issued 4,000, 12% debentures of ₹100 each at a premium of 4%, redeemable at a premium of 10%. In such case
(A) Loss on Issue will be debited by ₹24,000
(B) Loss on Issue will be debited by ₹56,000
(C) Loss on Issue will be debited by ₹40,000
(D) Premium on Redemption will be credited by ₹24,000
MAXIMUM LIMIT ON PREMIUM ON ISSUE IS :
10%
20%
5%
NO LIMIT
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
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
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
HP ltd. issued 5000, 8% debentures of Rs. 100 each at Rs. 95. It will credit 8% debentures account by
Rs. 5,00,000
Rs. 4,75,000
Either (a) or (b) as it decides
Rs. 5,25,000
Apple computers ltd. issued 10,000, 7% debentures of Rs. 100 each at a discount of Rs. 6 on 1st October 2019. Interest for the year ended 31st March, 2020 will be
Rs. 65,800
Rs. 32,900
Rs. 70,000
Rs. 35,000
William pens ltd. issued 10,000, 7% debentures of Rs. 100 each at a discount of Rs. 4. It has a balance in securities premium reserve of Rs. 25,000. It will write off discount on issue of debentures
Rs. 40,000 from securities premium reserve
Rs. 40,000 from statement of profit and loss
Rs. 25,000 from securities premium reserve and Rs. 15,000 from statement of profit and loss (finance cost)
Rs. 15,000 from securities premium reserve and Rs. 25,000 from statement of profit and loss (finance cost)
