Tag: book keeping and accountancy

Questions Related to book keeping and accountancy

It is uncommon is case of debentures issued as collateral security that______.

book keeping and accountancy company accounts - issue of debentures issue of debentures for consideration other than cash types of debentures issue of debentures at par, premium, discount, collateral security and for consideration other than cash

  1. Interest be given on debentures

  2. Accounting entry is not made

  3. Existence of debenture given as a note in balance sheet

  4. None of the above

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Correct Option: D

Features of debentures issued as collateral securities. Select from the given options______.

book keeping and accountancy company accounts - issue of debentures issue of debentures for consideration other than cash types of debentures issue of debentures at par, premium, discount, collateral security and for consideration other than cash

  1. Only interest on loan to be paid

  2. Interest on loan as well debenture to be paid

  3. Debenture issued as a security towards the loan taken

  4. Both a & b

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Correct Option: D

P Ltd. issued $10,000$, $12\%$ debentures of Rs. $100$ each at a premium of $10\%$ which are redeemable after $10$ years at a premium of $20\%$. The amount of loss on redemption of debentures to be written off every year will be.

book keeping and accountancy company accounts - issue of debentures issue of debentures for consideration other than cash types of debentures issue of debentures at par, premium, discount, collateral security and for consideration other than cash

  1. Rs. $1,60,000$

  2. Rs. $80,000$

  3. Rs. $20,000$

  4. Rs. $16,000$

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Correct Option: C

A Ltd issued $3,000$ $15\%$ Debentures of Rs. $100$ each at a discount of $7.5\%$ payable at a premium of $5\%$ at the end of $5$ years. The loss on issue of debentures will be.

book keeping and accountancy company accounts - issue of debentures issue of debentures for consideration other than cash types of debentures issue of debentures at par, premium, discount, collateral security and for consideration other than cash

  1. Rs. $22,500$

  2. Rs. $30,000$

  3. Rs. $37,500$

  4. Rs. $45,000$

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Correct Option: C

If a bill is. dishonoured, when presented for payment by third party, the drawer will debit:

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. Acceptors account

  2. Third partys account

  3. Neither of the two

  4. None of the above

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Correct Option: A

A bill of Rs 23000 dishonoured and noting charges paid by Drawer is Rs. 100 than Drawee's A/c will be Debited for Rs. __________.

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. 23100

  2. 23000

  3. 100

  4. none

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Correct Option: A

When noting charges are paid by the bank at the time of the dishonour of the bill, the drawee credits:

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. Bank account

  2. Noting charges account

  3. Neither (a) nor (b)

  4. None of these

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Correct Option: C

At the time of endorsement of a bill, the drawer credits:

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. The drawee

  2. The endorsees personal account

  3. Bills receivable account

  4. either (A) or (B)

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Correct Option: C

When the bill is dishonoured, the account debited in the book of drawee _____________.

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. Acceptor's account

  2. Creditor's account

  3. Bills payable account

  4. None of the above

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Correct Option: C

If a cheque sent for collection is dishonored, the debit is given to _________.

book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

  1. Suppliers Account

  2. Bank Account

  3. Customers Account

  4. Cash Account

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Correct Option: C
Explanation:

At the time of receiving a cheque, customer account was credited, hence if the cheque bounces, a reverse entry has to be passed by debiting the customer account and crediting the bank account.