Debentures Quiz

Debentures issued as collateral security will be debited to:

• Bank Account

• Debentures Suspense Account

• Debentures Account

• Bank Loan Account

Debentures are part of

• Shareholders' funds

• Borrowed Funds

• Borrowings from Bank

• None of these

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 :

• Credit Debentures ₹1,50,000 and debit bank A/c ₹1,50,000

• Debit Debenture Suspence A/c ₹1,00,000 and Credit Bank A/c ₹1,00,000

• Debit Debenture Suspence A/c ₹1,00,000 and Credit Debentures A/c ₹1,00,000.

• Debit Cash A/c ₹1,50,000 and Credit Bank A/c ₹1,50,000.

Debenture holders are:

• Owners of the Company

• Debtors of the company

• Creditors of the Company

• Promotors of the Company

Interest on debentures issued as a collateral security is paid on:

• Nominal value of debentures

• No interest is paid

• Face value of debentures

• Paid up value of debentures

Debentures are shown in the Balance Sheet of a company under the head of

• Non-current Liabilities

• Current Liabilities

• Share Capital

• None of these

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?

• Loss on issue of debentures a/c

• Debenture redemption premium a/c

• Bank a/c

• Debenture holder's a/c

Debentures represent the :

• Long term Borrowings of a company

• The Investment of Equity-Shareholders

• Directors' shares in a company

• Short-term Borrowings of a Company

Premium on Redemption of Debentures Account is:

• Personal Account

• Real Account

• Nominal Account

• All of the above

Debentures are

• owners of the company

• lenders of the company

• Vendors of the company

• customers of the company