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Test: Issue and Redemption of Debentures- Case Based Type Questions - Commerce MCQ


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8 Questions MCQ Test Online MCQ Tests for Commerce - Test: Issue and Redemption of Debentures- Case Based Type Questions

Test: Issue and Redemption of Debentures- Case Based Type Questions for Commerce 2024 is part of Online MCQ Tests for Commerce preparation. The Test: Issue and Redemption of Debentures- Case Based Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: Issue and Redemption of Debentures- Case Based Type Questions MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Issue and Redemption of Debentures- Case Based Type Questions below.
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Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 1

Read the following information and answer the given questions:

Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.

Q. Which amount of interest will be paid by Charan Ltd. to Paras Ltd.?

Detailed Solution for Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 1
10% of ₹7,00,000 = ₹70,000
Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 2

Read the following information and answer the given questions:

Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.

Q. What is the amount of discount given to Paras Ltd. on the issue of debentures?

Detailed Solution for Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 2
₹7,00,000 – ₹6,30,000 = ₹70,000
Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 3

Read the following information and answer the given questions:

Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.

Q. In which account is the difference between the assets and liabilities taken over and the payment made be transferred to?

Detailed Solution for Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 3
Goodwill is an intangible asset that is associated with the purchase of one company by another. Specifically, goodwill is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process.
Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 4

Read the following information and answer the given questions:

Charan Ltd. took over Assets of ₹6,00,000 and Liabilities of ₹40,000 of Paras Ltd. at an agreed value of ₹6,30,000. Charan Ltd. issued 10% Debentures of ₹100 each at a discount of 10% to Paras Ltd. in full satisfaction of the price. Charan Ltd. writes off any capital losses incurred during a year, at the end of that financial year.

Q. As Charan Ltd. writes off the capital losses where will the discount on issue of debentures be transferred to?

Detailed Solution for Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 4
Discount on issue of debentures is a capital loss and over a period of 3 to 5 years or is charged to “Securities Premium Account” as per the guidelines issued by ICAI. The discount on issue of debentures can be written-off either by debiting it to profit and loss or to securities premium account.
Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 5

Analyse the case given below and answer the questions that follow :

Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:

(i) ₹40 including premium of ₹10 on application

(ii) ₹40 including premium of ₹10 on allotment

(iii) Balance as first and final call.

Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.

Q. What is the total interest payable on the debentures issued?

Detailed Solution for Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 5
₹50,000 x 9 / 100 = ₹45,000
Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 6

Analyse the case given below and answer the questions that follow :

Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:

(i) ₹40 including premium of ₹10 on application

(ii) ₹40 including premium of ₹10 on allotment

(iii) Balance as first and final call.

Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.

Q. What amount of the money received in application is transferred to the securities premium reserve account:

Detailed Solution for Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 6
5000 × ₹10 = ₹50,000
Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 7

Analyse the case given below and answer the questions that follow :

Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:

(i) ₹40 including premium of ₹10 on application

(ii) ₹40 including premium of ₹10 on allotment

(iii) Balance as first and final call.

Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.

Q. The amount of money received during application is:

Detailed Solution for Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 7
5000 × ₹40 = ₹2,00,000
Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 8

Analyse the case given below and answer the questions that follow :

Nikhil Technologies Ltd. issued 5,000; 9% Debentures of ₹100 each at a premium of ₹20 payable as follows:

(i) ₹40 including premium of ₹10 on application

(ii) ₹40 including premium of ₹10 on allotment

(iii) Balance as first and final call.

Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made, and amounts received.

Q. The is the balance amount per debenture to be received at the first and final call is:

Detailed Solution for Test: Issue and Redemption of Debentures- Case Based Type Questions - Question 8
The balance amount per debenture to be received at the first and final call is ₹40.
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