Issue of Debentures – Test 1

The underwriting commission in case of issue of debentures can’t exceed :

W Ltd. issued 20,000, 8% debentures of Rs.10 each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be :

Loss on issue of debenture is generally written off in ______.

P Ltd. issued 15,000, 15% debentures of Rs.100 each at a premium of 10% which are redeemable after 10 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year is :

Deep Ltd. issued 1,00,000  7&  Debentures of Rs.100 each at a discount of 4%. redeemable after 5 years at a premium of 6%. Loss on issue of debentures is :

A company issued 1,00,000 12% debentures of Rs.100 each. Calculate the amount of interest on debentures.

In the balance sheet of a company, Debentures are shown under the head :

Loss on issue of debentures is treated as ______ .

Which of the following statement is true :

If debentures of Rs.4,70,000 are issued for the consideration of Rs.5,00,000, then balance Rs.30,000 will be credited to :

When debentures are issued at a discount and are redeemable at a premium. Which of the following account is debited at the time of issue of debentures ?

5,000, 12% debentures of Rs.100 each issued as collateral security. To record this transaction which of the following entry will be passed ?

In case of Balance Sheet of a company, debentures are shown under the head :-

Which of the following is not correct in respect of debentures :

Premium on redemption of debenture account appearing in the balance sheet is ________.

Swastik Ltd. issued 50,000, 12% debentures of Rs.100 each at a premium of 10% which are redeemable after 10 years at a premium of 20%. The loss on redemption of debenture to be written off every year is :

Premium on redemption of debentures account appearing in the balance sheet is _____ .

A company issued Rs.30,000, 15% debentures at a discount of 10%, redeemable after 15 years at a premium of 5%. Loss on issue of debentures will be :

Debentures can be

I. Mortgage Debentures or Simple Debentures

II. Registered Debentures or Bearer Debentures

III. Redeemable Debentures or Irredeemable Debentures

IV. Convertible Debentures or Non-Convertible Debentures.

Debenture Interest :

XYZ Ltd. issued 20,000, 8% debentures of Rs.10/- each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be ______ .

M/s. X Ltd. took over assets  of Rs.4,60,000 and liabilities of Rs.30,000 of M/s B Ltd., for a purchase consideration of Rs.4,40,000. M/s X Ltd paid the purchase consideration by issuing 10% debentures of Rs.100 each at 10% premium X Ltd. will issue _______ .

A company issued 6,000, 10% debentures of Rs.100 each at a discount of 10% which are redeemable at a premium of 5%. What is the amount of loss on issue of 6,000 debentures ?

F Ltd. purchased machinery for a book value of Rs.4,00,000. The consideration was paid by issue of 10% Debenture of Rs.100 each @ discount of 20%. The debenture account will be credited by:

A debenture holder gets :

A Ltd. issued 10,000 12% Debentures of Rs.10 each at par which are redeemable at the end of each year in equal lots in 5 years at a premium of 30%. The amount of loss on redemption of debentures to be written off in fourth and fifth year will be :

When Debentures are issued as Collateral Security, which entry has to be passed :

When debentures are issued as collateral security, interest is paid on :

6000 debentures were discharged by issuing Equity Shares of Rs.10 each at 20% premium. Find the number of shares issued.

Debenture holders are called ______ of the company