Tag: procedure for issue of debentures

Questions Related to procedure for issue of debentures

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 

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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

Premium on redemption of debenture is generally provided at the time of __________.

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. issue of debentures

  2. redemption of debentures

  3. every year

  4. after 10 years

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Correct Option: A

Hariom Industries Ltd. purchased a plant for Rs. 100,000 payable Rs. 37,000 in cash and balance by issue of 10% debentures of Rs. 100 each at a premium of 10%. The vendor will be issued____ debentures.

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. 630 of Rs. 100 each

  2. 572.72 of Rs. 100 each

  3. 700 of Rs. 100 each

  4. 600 of Rs. 100 each

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Correct Option: B

Debentures cannot be redeemed at ___________.

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. premium

  2. discount

  3. par

  4. more than 10% premium

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Correct Option: B