Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

The maximum discount at which debenture can be issued is _________.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. 10%

  2. 20%

  3. no such limit exist

  4. 50%

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Correct Option: C

Kanta Ltd. issued 1,00,000 debentures of Rs. 100 each at a discount of 5% to be redeemed at the end of 10th year from the date of issue at par. The loss on issue of debenture will be written off as ___________.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. Rs. 10,000 every month

  2. Rs. 50,000 every year

  3. Rs. 5,00,000 at the end of 10th year

  4. Rs. 5,00,000 at the end of 1st year of issue

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Correct Option: B

A debenture is said to be issued at par when the issue price is ________ the face price.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. more than

  2. less than

  3. equal to

  4. double 

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Correct Option: C

Debentures can be issued _________.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. at par

  2. at premium

  3. at discount

  4. all of the above

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Correct Option: D

Premium on issue of debentures can be utilized for writing off  _______.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. discount on issue of debenture/shares

  2. preliminary expenses

  3. goodwill/patent

  4. all of the above

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Correct Option: D

Discount on issue of debenture is shown in balance sheet as ___________.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. miscellaneous expenses

  2. goodwill

  3. claims receivable

  4. reserve capital

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Correct Option: A

Discount on issue of debenture is a ______.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. capital loss

  2. revenue loss

  3. financial loss

  4. speculative loss

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Correct Option: A

A debenture is said to be issued at premium when the issue price is ________ the face price.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. more than

  2. less than

  3. equal to

  4. double 

Show answer
Correct Option: A

Loss on issue of debenture A/c is a __________.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. personal A/c

  2. nominal A/c

  3. real A/c

  4. dummy A/c

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Correct Option: B

Interest an Debentures will be debited to Profit and Loss Account, whether there is profit or loss.

book keeping and accountancy company accounts part - 2 (accounting for debentures) discount/loss on issue of debenture written off issue of debentures procedure for issue of debentures

  1. True

  2. False

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Correct Option: A