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Which of the following is/are true with respect to debentures?
W Ltd. issued 20,000, 8% debentures of Rs. 10 each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written of every year will be:
P Ltd. issued 15,000, 15% 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 is:
The underwriting commission in case of issue of debentures can’t exceed:
According to Companies Act, underwriting commission should not exceed 5 per cent of the nominal value of a share and 2½ per cent in the case of debentures.
When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.
Deep Ltd. issued 1,00,000 7% Debentures of Rs. 100 each at a discount of 4% redeemable after 5 years at a premium of 6%. Loss on issue of debentures is :
T Ltd. has issued 14% Debentures of Rs. 20,00,000 at a discount of 10% on April 01,2004 and the company pays interest half-yearly on June 30 and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance sheet will be
F Ltd. purchased Machinery from G Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% debentures of Rs. 100 each at a discount of 20%. The debenture account was credited with ________.
Value of machinery = 4,00,000
Debenture cost =100 issued at 20% discount
No. of Debenture = 4,00,000/80= 5,000
F Ltd. A/C Dr.4,00,000
Debenture issued at at discount Dr. 1,00,000
To 10% Debenture A/C =5,00,000
T Ltd. purchased land & building from U Ltd. for a value of Rs. 2,00,000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%. The debentures account will be credited with:
Loss on issue of debentures is generally written off in:
In the balance sheet of a Company, Debentures are shown under the head:
A company issued 1,00,000 12% debentures of Rs. 100 each. Calculate the amount of interest on debentures.
Loss on issue of debenture is generally written off in ___________
Premium on redemption of debentures account appearing in the balance sheet is _______________.
A sent some goods costing Rs. 3,500 at a profit of 25% on sale or return basis. B returned goods amounting to Rs. 800 at Invoice value. At the end of the accounting period on March 31st 2009, the remaining goods were neither returned nor approved by B. The stock on approval will be shown in B/S as:
6000 debentures were discharged by issuing Equity Shares of Rs. 10 each at 20% Premium. Find the number of shares issued.
The number of equity shares issued will be 5,000.
We can find the number by following the steps given below-
We know that the amount of premium is calculated on the face value of the share.
Amount of premium=20% of the face value of a share
=20% of Rs. 10
So, the value per equity share= Face value of share+ amount of premium
Amount to be raised by issuing debentures= Number of debentures× face value of debentures
Now, we know that the debentures were discharged and this amount is to be raised by issues equity shares.
So, the number of shares to be issued will be calculated by dividing the amount to be raised by the value per equity share
Number of equity shares= Amount to be raised by issuing shares/ Value per share
Therefore, the number of equity shares issued will be 5,000.
F Ltd. purchased machinery for a book value of Rs. 4,00,000. The consideration was paid by issue of 10% Debenture of Rs. 100 each @ discount of 20%. The debenture account will be credited by:
Loss on issue of debentures is treated as ___________.
Correct option is D)
Loss on issue of debentures eans the difference between the Redeemable Value and the Face Value. It is treated as a Miscellaneous expenditure and is debited to "Loss on Issue of Debentures Account."
A Ltd. issued 10,000 12% Debentures of Rs. 10 each at par which are redeemable at the end of each year in equal lots in 5 years at a premium of 30%. The amount of loss on redemption of debentures to be written off in fourth and fifth year will be:
W Ltd. issued 20,000, 8% debentures of Rs. 10 each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be
When debentures are issued as collateral security, interest is paid on:
When Debentures are issued as Collateral Security, which entry has to be passed :
Debenture holders are called __________ of the Company
On May 01, 2004 U Ltd. issued 7% 10,000 convertible debentures of Rs. 100 each at a premium of 20%. Interest is payable on September 30 and March 31 every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended March 31, 2005 =?
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