Company Accounts – Issue of Debentures 0 Company Accounts - Issue of Debentures 1 / 30 Q.30 The unregistered debentures are known as naked debentures. TRUE FALSE 2 / 30 Q.28 The issue of debentures less than face value of debenture to be termed as issue of debentures at discount. TRUE FALSE 3 / 30 Q.28 The issue of debentures less than face value of debenture to be termed as issue of debentures at discount. TRUE FALSE 4 / 30 Q.27 The amount of irredeemable debentures is not paid in the lifetime of the company. TRUE FALSE 5 / 30 Q.26 The acknowledgement of debt under common seal of the company in termed as share. TRUE FALSE 6 / 30 Q.25 The debenture is owner of the company. TRUE FALSE 7 / 30 Q.24 Convertible debentures are converted into_______ Equity shares Preference shares Deferred shares 8 / 30 Q.23 Debenture holders get income in the form of_____ Dividend Interest Bonus 9 / 30 Q.22 The amount of interest payable to the debenture holder is______ Fixed Fluctuating Variable 10 / 30 Q.21 The debenture holder is _____ of the company. Debtor Creditor Owner Supplier 11 / 30 Q.20 The interest on debentures is transferred to ______ Debentures A/c Profits & Loss A/c Balance Sheet Deb.holders A/c 12 / 30 Q.19 _______ Debentures which are not secured against any charge on assets of the company. Secured Unsecured Redeemable Convertible 13 / 30 Q.18 _______ Debentures of which the amount is repaid after specific period. Redeemable Irredeemable Secured Non-convertible 14 / 30 Q.17 The issue of debentures more than face value is called_______ At par At discount At premium None of these 15 / 30 Q.16 The debentures which are converted into shares is called________ Convertible debentures Non-Convertible debentures Bearer debentures Unsecured debentures 16 / 30 Q.15 The issue of debentures less than the face value is called. At par At premium At discount None of these 17 / 30 Q.14 _______ Debentures which are recorded in register of company. Simple debentures Registered debentures Bearer debentures Open debentures 18 / 30 Q.13 The issue of debenture at its face value is called the issue______ At par At discount At premium None of these 19 / 30 Q.12 _______ is acknowledgment of debt under common seal of company. Share Debenture Cheque Bond 20 / 30 Q.11 The Company has - Redeemed 500 Debentures for Rs.45,000 Issued 500 Debentures for cash 45,000 Redeemed 500 Debentures for Rs.50,000 Issued 500 debentures on which cash Rs.45,000 is received and Rs.5,000 is calls unpaid 21 / 30 Q.10 The Debentures were issued - At a discount of 11.11% At a premium of 10% At a discount of 10% At par 22 / 30 Q.9 A Company issued Debentures of the face value of Rs.1,00,000 at a discount of 6% on 1st January 2009. These Debentures are redeemable by annual drawings of Rs.20,000 made on 31st December each year. The Directors decided to write off discount based on the Debentures outstanding each year. Amount of discount to be written off in the 5th year will be - Rs.400 Rs.600 Rs.800 None of the above. 23 / 30 Q.8 Which of the following is true with regard to 10% Debentures issued at a discount of 20% ? The carrying amount of Debentures gets reduced each year at a rate of 20% Issue price and the carrying amount amount of Debentures are equal At the time of redemption, the debentures holder will be paid the issue price The face value and the carrying amount of Debentures are equal 24 / 30 Q.7 The underwriting commission in case of issue of Debentures can not exceed - 2% 2.5% 3% 5% 25 / 30 Q.6 A ltd took over the asset of Rs.6,60,000 & liabilities of Rs.80,000 of B ltd .for an agreed purchase consideration of Rs.6,00,000 payable 10% in cash & the balance by the issue of 15% debenture of Rs..100 each at 10% discount.the number of debenture to be issued is 6,600 5,000 6,000 5,400 26 / 30 Q.5 debenture account is personal account real account nominal account None of these 27 / 30 Q.4 which of the following is false ? debentures can be issued for cash or consideration other than cash or as collateral security debenture cannot be forfeited for non-payment of call money A company can buy its own debenture a debentures issued at a discount can be redeemed at a premium 28 / 30 Q.3 Debentures can be I. Mortgage Debenture or Simple Debenture ; II.Registered Debenture or Bearer Debenture III.Redeemable Debentures or Irredeemable Debenture IV.Convertible Debenture or Non-convertible Debenture Both (I) & (III) Both (II) & (III) Both (I) & (II) All the above 29 / 30 Q.2 When debentures are issued as collateral security ,the final entry for recording the transaction in the books is Credit debenture account & debit cash account debit debenture suspense account & credit cash account debit debenture suspense account & credit debenture account debit cash account & credit the loan account for which security is given 30 / 30 Q.1 A Ltd. issued As 1,00,000 Debentures at a discount of 6% on 1st Jan., 2001 repayable at the end of 5th year. Discount written off is. Rs.6,000 in first year Rs.6,000 in 5th year Rs.1,200 every year Rs.3,000 each in1st and 5th year Your score is LinkedIn Facebook Twitter VKontakte