Debentures 2

Discount on issue of debentures is restricted to

• 10%

• 20%

• 25%

• None of these

Electronics ltd. issued 10,000, 6% debentures of Rs. 100 each at a premium of Rs. 10. It will credit 6% debentures account by

• Rs. 11,00,000

• Rs. 10,00,000

• Rs. 9,00,000

• Rs. 8,00,000

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

Which of the following is correct with respect to debentures

• They can be issued on credit

• They can be issued for consideration other than cash

• They cannot be issued as collateral security

• They can be issued partly on credit and partly in cash

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)

Luxor pens ltd. issued 10,000, 7% debentures of Rs. 100 each at a discount of Rs. 4 redeemable at a premium of Rs. 6. It will write of loss on issue of debentures

• From securities premium reserve

• From statement of profit and loss

• From general reserve

• None of these

Which of the following statement is correct

• A debentureholder is an owner of the company

• A debentureholder 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 debentureholders receives interest only in the event of profits

In the balance sheet of a company, interest accrued and due on debentures is shown under the main head

• Share capital

• Reserves and surplus

• Current liabilities

• Non current liabilities