Coupon rate

Required rate of return

Yield to maturity

Current yield

Either (B) or (D) above

The proceeds of fresh issue of debentures

The proceeds of issue of fixed deposits

The sale proceeds of investments

Both (a) and (b)

Writing off any loss on sale of fixed asset

Writing off any loss of revenue nature

writing off the expenses/ discount on the issue of debentures

None of the above

Debited to Debenture Redemption Premium Account

Credited to Loss on Issue of Debentures Account

Debited to Loss on Issue of Debentures Account

Debited to Discount on Issue of Debentures Account

These can be issued for cash

These can be issued for consideration other than cash

These can be issued as collateral security

These can be issued in lieu of dividends

They can be issued for cash

They can be issued for consideration other than cash

These can be issued as collateral security

Both (a) and (b) above

Credit Debentures A/c and debit Cash A/c

Debit Debentures Suspense A/c and credit Cash A/c

Debit Debentures Suspense A/c and credit Debentures A/c

Debit Cash A/c and credit the loan A/c for which security is given

28,000

30,000

32,000

35,000

630 debentures of Rs. 100 each

700 debentures of Rs. 100 each

770 debentures of Rs. 100 each

600 debentures of Rs. 100 each

True

False

Debenture Capital

Debenture

Loan

Capital

True

False

On the assets side of Balance Sheet

On the debit side of Profit and Loss Account

By way of deduction from the amount of debentures

On the liabilities side of Balance Sheet

Debit Asset A/c; Credit Vendor A/c

Debit Asset A/c; Credit Bank A/c

Debit Asset A/c; Credit Debentures A/c

Debit Debenture A/c; Credit Asset A/c

Debit Debenture A/c; Credit Vendors A/c

For consideration other wise than cash

As collateral security for borrowings from financial institutions

In lieu of dividends

Both (a) and (b)

Dividend

Right prescribed articles

Ownership of the company

Interest at fixed rate

$2\%$

$2.5\%$

$3\%$

$5\%$

$5\%$

$2^{1 _{/2}}\%$

$2\%$

$4\%$

The carrying amount of debentures is $80\%$ of face value

Issue price and the carrying amount of debentures will necessarily be equal

At the time of redemption, the debenture holder will be paid the issue price

The carrying amount and the face value of debentures are equal

They are treated as loan

Their transfer requires a deed of transfer

They are transferable by mere delivery

The interest on it is paid to the bearer or holder

Expenses of the Co.

Asset of the Co.

Liability of the Co.

Income of the Co.

A debenture holder is owner of the company

A debenture holder can get his money back only on the liquidation of the company

A debenture issued at a discount can be redeemed at a premium

A debenture holder receives interest only in the event of profits

Credit Debentures A/c and Debit Cash A/c

Debit Debentures Suspense A/c and Credit Cash A/c

Debit Debentures Suspense A/c and Credit Debentures A/c

Debit Cash A/c and credit the Loan A/c for which security is given

Debit Debentures A/c and credit the Loan A/c for which security is given

At maturity, debenture holders get back their money

Debentures can be forfeited for non-payment of call money

In company's balance sheet, debentures are shown under the head Secured Loans

Interest on debentures is charged against profits

Revenue loss to be charged in the year of issue

Capital loss to be written off from capital reserve

Capital loss to be written off over the period of the debentures

Capital loss to be shown as goodwill

Rs. $80,000$

Rs. $20,000$

Rs. $8,000$

Rs. $16,000$

$24,000$

$28,800$

$36,000$

$32,000$

A company can issue convertible debentures

Debentures cannot be secured

A company can issue redeemable debentures

Debentures have no right to participate in profits over and above their fixed interest

They can be issued for cash

They can be issued for a consideration other than cash

They cannot be issued as collateral security

Both (a) and (b)

A company can issue redeemable debentures

A company can issue debentures with voting rights

A company can issue convertible debentures

A company can buy its own debentures and shares

Discount of $4\%$

Discount of $6\%$

Premium of $6\%$

Discount of $10\%$

They can be issued to vendors

They can be issued for consideration other than cash

They can be issued as collateral security

They can be issued in lieu of dividends

Write off the discount on issue of shares or debentures

Write off the premium on redemption of shares or debentures

Pay dividends

Write off capital loss

Credit debentures A/c and debit cash A/c

Debit debentures suspense A/c and credit cash A/c

Debit cash A/c and credit the loan A/c for which security is given

Debit debentures A/c and credit the loan A/c for which security is given.

Rs. $40,000$

Rs. $10,000$

Rs. $20,000$

Rs. $8,000$

For cash

For consideration other than cash

As a collateral security

Any of the above

Debentures Account

Bank Loan Account

Debenture holdings Account

Debenture Suspense Account

These are treated as negotiable instruments.

Their transfer requires a deed of transfer.

These are transferable by mere delivery

The interest on it is paid to the holder.

Debentures which are convertible on or after $18$ months

Non - convertible debentures which are redeemable on or after $18$ months

Debentures which are non - convertible on or after $18$ months

None of these

Share Capital

Reserves & Surplus

Current Liabilities

Non - Current Liabilities

$Rs 5,20,000$

$Rs 5,00,000$

$Rs 4,80,000$

$Rs 3,20,000$

Personal Account

Real Account

Nominal Account

None of these

Share Capital

Reserves & Surplus

Secured Loans

Miscellaneous Expenditure

$2\%$

$2.5\%$

$3\%$

$5\%$

They can be issued for cash

They can be issued for consideration other than cash

They can be issued as collateral securities

They can be issued in lieu of dividends

Credit debenture A/c. and Debit cash A/c.

Debit debenture suspense A/c. and credit cash A/c.

Debit debenture suspense A/c. and credit debenture A/c.

Debit cash A/c. and credit loan A/c. for which security is given

They can be issued for cash.

They can be issued for consideration other than cash.

They cannot be issued as collateral securities.

Both (A) and (B) above.

125 of Rs. 100 each

123 of Rs. 100 each

112.50 of Rs. 100 each

143 of Rs. 100 each

Rs. $2,40,000$

Rs. $60,000$

Rs. $3,00,000$

Rs. $80,000$

$10\%$

$7\%$

$6\%$

$5\%$

Bank A/c

Debenture Suspense Account

Debenture Redemption A/c

Debenture holders A/c

$30,000$

$28,800$

$32,000$

$35,000$

$15\%$

$5\%$

$10\%$

$20\%$

Credit Debentures Rs. $1,50,000$ and debit cash A/c. Rs. $1,50,000$

Debit Debenture Suspense A/c Rs. $1,00,000$ and credit Cash A/c Rs. $1,00,000$

Debit Debenture Suspense A/c Rs. $1,00,000$ and Credit Debentures A/c Rs. $1,00,000$

Debit Cash A/c Rs. $1,50,000$ and credit Bank A/c Rs. $1,50,000$

Interest be given on debentures

Accounting entry is not made

Existence of debenture given as a note in balance sheet

None of the above

Only interest on loan to be paid

Interest on loan as well debenture to be paid

Debenture issued as a security towards the loan taken

Both a & b

Rs. $1,60,000$

Rs. $80,000$

Rs. $20,000$

Rs. $16,000$

Rs. $22,500$

Rs. $30,000$

Rs. $37,500$

Rs. $45,000$