Issue of debentures - class-XII
| Description: issue of debentures | |
| Number of Questions: 71 | |
| Created by: | |
| Tags: accountancy elements of accounts book keeping and accountancy issue and redemption of debentures accounting for share capital and debentures accounting for debentures company accounts (debentures) company accounts part - 2 (accounting for debentures) company accounts - issue of debentures company accounts : issue of shares and debentures |
Consider the following statements-Current ratio is increased by
- issue of redeemable preference shares.
- selling of old furniture for cash.
- cash realized from debtors.
Discount on issue of debenture A/c is to be written off ___________.
The issue of debentures less than the face value is called_______.
A debenture is said to be issued at discount when the issue price is _____ the face price.
A company issued 12% debentures of Rs. 1000 each at Rs. 900 to be redeemable at Rs. 1050. The difference of Rs. 150 will be ___________.
Loss on issue of Debentures is generally written off in __________.
The document inviting offers from public to subscribe for the debenture or shares or deposits of a company is a
Debenture interest -
Which of the following statements is true?
ABC Ltd. purchased Machinery from Kumar Company for a book value of Rs. 2,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ____.
Which of the following statements is false?
Discount Issue of Debenture a-
Which of the following is true with regard to $10\%$ Debentures issued at a discount of $20\%$?
Interest on Debentures is calculated on -
State, with reasons, whether the following statements are True and False.
Share transfer in depository mode is fast and economical.
When debentures are issued at par but are redeemable at premium, the entry is:
Interest on debenture is __________.
Statement (A): Discount on issue of debentures represents capital loss.
Statement (B): The amount of such discount cannot be written off annually
When debentures are issued at a discount but are redeemable at a premium the entry is:
What journal entry is passed, when the interest on debentures is due?
Interest payable on debenture is:
Loss on issue of debentures account is a:
When debentures are issued at a discount it is prudent to write off the discount:
What journal entry is passed to write off discount on issue of debentures?
On $15$th June, $1988$ a company had $5,000$ $10\%$ Redeemable Preference Shares of Rs. $10$ each which were issued on $1$st April, $1980$ with a redemption period of $20$ years. These shares will be redeemed ____________.
For creating Capital Redemption Reserve _______________ is passed.
Which of the following is odd one?
The maximum discount at which debenture can be issued is _________.
Kanta Ltd. issued 1,00,000 debentures of Rs. 100 each at a discount of 5% to be redeemed at the end of 10th year from the date of issue at par. The loss on issue of debenture will be written off as ___________.
A debenture is said to be issued at par when the issue price is ________ the face price.
Debentures can be issued _________.
Premium on issue of debentures can be utilized for writing off _______.
Discount on issue of debenture is shown in balance sheet as ___________.
Discount on issue of debenture is a ______.
A debenture is said to be issued at premium when the issue price is ________ the face price.
Loss on issue of debenture A/c is a __________.
Interest an Debentures will be debited to Profit and Loss Account, whether there is profit or loss.
Premium on redemption of debenture is generally provided at the time of __________.
Hariom Industries Ltd. purchased a plant for Rs. 100,000 payable Rs. 37,000 in cash and balance by issue of 10% debentures of Rs. 100 each at a premium of 10%. The vendor will be issued____ debentures.
Debentures cannot be redeemed at ___________.
Premium received on Issue of Debentures is?
A company issued 1000, 12% debentures of Rs. 100 at par redeemable at 10% premium. 12% stands for ______.
Premium received on issue of Debenture is shown in ____________.
Which of the following is false?
A company issues $14\%$ debentures of Rs. $10,00,000$ at a discount of $10\%$. The discount allowed will be treated in the account books as.
Interest payable on debentures is?
As per the Companies Act, "Interest accrued but not due on debentures" should be shown.
When debentures are issued at discount. Such discount ____________.
In debenture account _________ is to be mentioned.
How many debentures will a company be required to issue for satisfying the purchase considerations of $Rs. 28,80,000$ if the debenture is of $Rs. 80$ and is issued at a premium of $Rs. 10$ per debenture?
Calculating the amount of profit to be set aside annually with the help of sinking fund table, is the ____ step involved in the working of sinking fund method.
When debentures are issued at discount. Such discount_________.
Interest is paid to the person who produces the interest coupon attached to debenture in case of -
X.Ltd. issued Rs$1,00,000$ $12\%$ debentures at a discount of $6\%$ on $1st$ April repayable by five equal annual drawings of Rs$20,000$ each on $31st$ March every year. The amount of discount to be written of each year assuming that the company closes its accounts on financial year basis is-
In the Balance Sheet of a company, Debenture Redemption Premium Account appears under the head:
A Ltd. took over the assets of Rs$6,60,000$ and liabilities of Rs$80,000$ of B Ltd. for an agreed purchase consideration of Rs$6,00,000$ payable $10\%$ in cash and the balance by the issue of $15\%$ Debentures of Rs$100$ each at $10\%$ discount.
The number of debentures to be issued is-
X Ltd issues $500, 15\%$ Debentures of Rs$100$ each on $1st$ May at a discount of $10\%$ redeemable at a premium of $5\%$ after $4$ years. Interest was payable half yearly on $30th$ June and $31st$ December. The amount of interest debited to profit & Loss Account for the year ended $31st$ March is-
X Ltd. has issued $14\%$ Debentures of Rs $20,000$ at a discount of $12\%$ on April $01$ and the company pays interest half-yearly on June $30$, and December $31$ every year. On March $31$ the amount shown as "Interest accrued but not due" in the Balance Sheet will be
X Ltd issues $500, 15\%$ Debentures of Rs$100$ each on $1st$ May at a discount of $10\%$ redeemable at a premium of $5\%$ after $4$ years. Interest was payable half yearly on $30th$ June and $31st$ December. The amount of interest paid for the year ended $31st$ March is-
Whenever debentures are cancelled, any profit on cancellation is transferred to _________________.
XYZ Ltd. issued $4,000$ $12\%$ Debentures of Rs. $100$ each on $1.4.05$. Interest is payable on $30$th June and $31$st December each year. Company deducts Income Tax @$10\%$ on interest. What is the net amount of interest paid to Debenture holders on $30.6.05$?
If the whole amount of debenture is received in one installment, then the journal entry for making the allotment is:
Which of the following statement is true?
XY Ltd. has issued $12\%$ Debentures on $1.4.05$ for Rs. $4,00,000$. Interest is payable on $30$th June and $31$st Dec. every year. Amount of outstanding Interest on $31.3.06$ will be.
F Ltd. purchased Machinery from G Company for a book value of Rs. $4,00,000$. The consideration was paid by issue of $10\%$ debentures of Rs. $100$ each at a discount of $20\%$. The debenture account will be credited by.
Textile Ltd. has issued debentures carrying a coupon rate of $12\%$ at a discount of $20\%$. The effective rate of interest for company will be ______ .
T Ltd. has issued $15\%$ Debentures of Rs. $20,00,000$ at a discount of $10\%$ on April $01$, $2004$ and the company pays interest half-yearly on June $30$ and December $31$ every year. On March $31$, $2006$, the amount shown as "interest accrued but not due" in the Balance Sheet will be.
On May $01$, $2005$ U Ltd. issued six per cent, $10,000$ convertible debentures of Rs. $100$ each at a premium of $20\%$ Interest is payable on September $30$ and March $31$ every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended March $31$, $2006$, will be.
On May $01$, $2003$, Y Ltd. issued $7\%$ $40,000$ convertible debentures of Rs. $100$ each at a premium of $20\%$. Interest is payable on September $30$ and March $31$, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended March $31$, $2004=?$
T Ltd. purchased land and building from U Ltd. for a book value of Rs. $3,00,000$. The consideration was paid by issue of $12\%$ Debentures of Rs. $100$ each at a discount of $20\%$. The debentures account is credited with.
G Ltd purchased land and building from H Ltd. at a book value of Rs. 2,00,000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%. For this transaction, the debentures account would be credited with -