Debentures Quiz

What is the journal entry when debentures are issued at par and the full amount is collected in the application stage?

• Bank a/c dr 100

• Bank a/c dr 95

• Deb application & allotment a/c Dr 100

• Deb allotment a/c Dr 100

If debentures are issued at a discount and the full amount is collected in the application stage, what is the discount amount for Rs 100 debentures issued at a discount of 5%?

• Rs 10

• Rs 15

• Rs 20

• Rs 5

When debentures are issued at a premium, what is the journal entry for the application stage if the full amount is collected?

• Bank a/c dr 105

• Deb application & allotment a/c Dr 100

• Deb allotment a/c Dr 105

• Bank a/c dr 100

In the case of debentures issued at a discount, what is the entry for the allotment stage if Rs 30 is collected on application and the balance is collected on allotment?

• Deb application & allotment a/c Dr 30

• Deb application a/c Dr 30

• Bank a/c Dr 30

• Deb allotment a/c Dr 65

What is the total amount collected in the application stage for 20,000 debentures of Rs 100 each issued at a discount of 4%?

• Rs 1,000,000

• Rs 600,000

• Rs 1,200,000

• Rs 800,000

If a company issues 5,000 debentures at a premium of 20%, what is the total amount payable on application if Rs 50 is collected?

• Rs 250,000

• Rs 1,500,000

• Rs 500,000

• Rs 1,000,000

What is the journal entry for writing off the discount on issue of debentures?

• Deb allotment a/c Dr

• Deb application a/c Dr

• Securities premium a/c Dr

• Bank a/c Dr

When debentures are issued at a premium, what is the entry for the securities premium reserve?

• To SPR a/c

• To Deb application a/c

• To Bank a/c

• To Deb allotment a/c

What is the total amount of debentures issued by X Ltd if 20,000 debentures of Rs 100 each are issued at a discount of 4%?

• Rs 1,960,000

• Rs 2,000,000

• Rs 2,040,000

• Rs 2,100,000

If the debenture amount is collected in installments, what is the entry for the bank when Rs 30 is collected on application?

• Bank a/c dr 30

• Deb allotment a/c Dr 30

• Deb application a/c Dr 30

• Securities premium a/c Dr