Company Accounts Issue Of Debentures CBSE Questions & Answers

Company Accounts Issue Of Debentures

This is Accountancy Class 12 Company Accounts Issue of Debentures CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
A limited company has issued Rs.1, 00,000 9 percent debentures at a discount of 6 percent 1st Jan 2000. These debentures are to be redeemed in equal installments over 4 years starting from the end of 1st year show discount on issue account for 4 years. It is an example of Loss on issue of Debentures Account which method
  • A
    Both
  • B
    Proportion Method
    Correct
  • C
    equal installment method
  • D
    None
2
Which of these following statement is false regarding Interest on Debentures
  • A
    is usually payable half yearly
  • B
    it is charge on asset
    Correct
  • C
    is paid even company is suffering from loss
  • D
    calculated at a final rate on its face value
3
Maximum discount limit on issue of debentures is
  • A
    Not fixexd
    Correct
  • B
    10 percent
  • C
    12 percent
  • D
    11 percent
4
Debentures which have the charge on the property of the company is ________
  • A
    Unsecured
  • B
    None of the above
  • C
    Registered
  • D
    Secured
    Correct
5
Interest on debenture is calculated at a fixed rate on the ____ of debentures
  • A
    Face value
    Correct
  • B
    Market value
  • C
    Premium value
  • D
    Discounted value
6
At the rime of issue of debentures, Debenture account is credited by
  • A
    Issue price of the debenture
  • B
    The amount received
  • C
    Face value of the debenture
    Correct
  • D
    None
7
Interest on debenture is considered as an
  • A
    Revenue
  • B
    Assets
  • C
    Expense
    Correct
  • D
    None
8
Which Section of company act deals with discount issue of debentures
  • A
    78
  • B
    79.0
    Correct
  • C
    75
  • D
    72
9
Debentures which do not carry any rate of interest
  • A
    specific coupon rate Debentures
  • B
    Zero Coupon Debentures
    Correct
  • C
    Secured Debentures
  • D
    Second Debentures
10
Discount on issue of debentures is written off against_____
  • A
    Goodwill
  • B
    Security Premium
    Correct
  • C
    Assets
  • D
    Fictitious Assets
11
At what amount Interest is payable on debentures issued as collateral security
  • A
    None of these
  • B
    Half amount to be payable
  • C
    Not payable
    Correct
  • D
    Fully payable
12
Debenture loan account is shown on the which side of balance sheet
  • A
    Equity
  • B
    Asset side
    Correct
  • C
    Creditors
  • D
    Liabilities
13
Which statement is false related to collateral securities
  • A
    It is an additional security
  • B
    It is a the principal security
    Correct
  • C
    Realized when principal security fails to meet the loan liability
  • D
    It is landed above the principal security
14
Formula for calculation of no. of debentures issued
  • A
    \(\frac{{{\text{Cash consideration}}}}{{{\text{Issue price of debentures}}}}\)
  • B
    \(\frac{{{\text{Purchase consideration}}}}{{{\text{Issue price of debentures}}}}\)
    Correct
  • C
    \(\frac{{{\text{Purchase consideration}}}}{{{\text{Issue price of shares}}}}\)
  • D
    \(\frac{{{\text{Cash consideration}}}}{{{\text{Issue price of shares}}}}\)
15
When debentures are issued at premium debenture suspense account is
  • A
    Debited
  • B
    Not to be recorded
  • C
    Credited
    Correct
  • D
    None of these