CBSE Class 12 Accountancy Debentures Worksheet

Question. When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue:
(a) Debentures account
(b) Premium on redemption of debentures account,
(c) Loss on issue of debentures account
(d) Securities Premium Reserve Account

Answer: C

Question. Convertible debentures cannot be issued at a discount if:
(a) They are to be immediately converted;
(b) They are not to be immediately converted,
(c) None of the above
(d) Both a and b

Answer: A

Question. Discount on issue of debentures is shown under the following head in the Balance sheet :
(a) Statement of profit and Loss,
(b) Other non-Current Assets,
(c) Debentures account
(d) None of these

Answer: D

Question. Debentures can be issued at :
(a) Par
(b) Discount
(c) Premium
(d) All of them

Answer: D

Question. Debenture is also named as :
(a) Share
(b) Bond
(c) Equity
(d) Reserve

Answer: B

Question. Debentures which are transferrable by mere delivery are:
(a) Registered debentures
(b) First Debentures
(c) Bearer debentures
(d) None of these

Answer: C

Question. X Co. Ltd purchased assets worth Rs 14, 40,000. It issued debentures of Rs 100 each at a discount of 4 percent in full satisfaction of the purchase consideration. The number of debentures issued to vendor is:
(a) 15, 000
(b) 14,400
(c) 16,000
(d) 30,000

Answer: A

Fill in the blanks :

Question. ................. refers to extinguishing or discharging the liability on account of debentures in accordance with the terms of issue.
Answer: Redemption of debentures

Question. .......................... is a written instrument acknowledging a debt under the common seal of the company.
Answer: Debenture

Question. No DRR is required for debentures issued by ............... regulated by Reserve Bank of India ................. Companies for both public as well as privately placed debentures.
Answer: All India Financial Institutions (AIFIs) Banking

Question. A.................... may be defined as subsidiary or secondary or additional security beside the primary security when a company obtains a loan or overdraft from a bank or any other financial Instituiton.
Answer: collateral security

Question. Debentures which are convertible into equity shares or in any other security either at the option of the company or the debenture holders are called ................
Answer: convertible debentures

Question. ................... refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default. The charge may be fixed or floating.
Answer: Secured debentures

Question. The amount credited to the Debenture Redemption Reserve shall not be utilised by the company except for the purpose of ....................
Answer: redemption of debentures

Question. ........... can be issued at dicount but............ cannot be issued at discount except ESOP.
Answer: Debentures, Shares

 

 

Q-1.Yashraj Ltd. Has 40,000, 9% Debentures of Rs. 100 each due for redemption on 31st March 2015. Assume that Debenture Redemption Reserve has a balance of Rs. 7, 20,000 on that date. It was decided to invest the required amount towards Debenture Redemption Investment. Investments were realized at 102% less 0.25% brokerage and debentures were redeemed. Record the necessary entries.