Test: Issue Of Debentures - 1


30 Questions MCQ Test Fundamentals of Accounting for CA CPT | Test: Issue Of Debentures - 1


Description
This mock test of Test: Issue Of Debentures - 1 for CA Foundation helps you for every CA Foundation entrance exam. This contains 30 Multiple Choice Questions for CA Foundation Test: Issue Of Debentures - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Issue Of Debentures - 1 quiz give you a good mix of easy questions and tough questions. CA Foundation students definitely take this Test: Issue Of Debentures - 1 exercise for a better result in the exam. You can find other Test: Issue Of Debentures - 1 extra questions, long questions & short questions for CA Foundation on EduRev as well by searching above.
QUESTION: 1

 Which of the following is/are true with respect to debentures?

Solution:
QUESTION: 2

 Which of the following statements is false?

Solution:
QUESTION: 3

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:

Solution:
QUESTION: 4

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: 

Solution:
QUESTION: 5

The underwriting commission in case of issue of debentures can’t exceed:

Solution:
QUESTION: 6

 When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.

Solution:
QUESTION: 7

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 : 

Solution:
QUESTION: 8

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

Solution:
QUESTION: 9

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 ________.

Solution:

Value of machinery = 4,00,000

Debenture cost =100 issued at 20% discount 

                           =80

No. of Debenture = 4,00,000/80= 5,000

Jounral entry; 

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

QUESTION: 10

 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: 

Solution:
QUESTION: 11

Loss on issue of debentures is generally written off in:

Solution:
QUESTION: 12

In the balance sheet of a Company, Debentures are shown under the head: 

Solution:
QUESTION: 13

A company issued 1,00,000 12% debentures of Rs. 100 each. Calculate the amount of interest on debentures.

Solution:
QUESTION: 14

Loss on issue of debenture is generally written off in ___________

Solution:
QUESTION: 15

Premium on redemption of debentures account appearing in the balance sheet is _______________.

Solution:
QUESTION: 16

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:

Solution:
QUESTION: 17

6000 debentures were discharged by issuing Equity Shares of Rs. 10 each at 20% Premium. Find the number of shares issued. 

Solution:
QUESTION: 18

 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: 

Solution:
QUESTION: 19

Which of the following is false?

Solution:
QUESTION: 20

Loss on issue of debentures is treated as ___________.

Solution:
QUESTION: 21

Which of the following statements is false?

Solution:
QUESTION: 22

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:

Solution:
QUESTION: 23

A debenture holder gets :

Solution:
QUESTION: 24

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

Solution:
QUESTION: 25

When debentures are issued as collateral security, interest is paid on: 

Solution:
QUESTION: 26

 When Debentures are issued as Collateral Security, which entry has to be passed :

Solution:
QUESTION: 27

Which of the following statements is true?

Solution:
QUESTION: 28

 Debenture holders are called __________ of the Company 

Solution:
QUESTION: 29

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 =?

Solution:
QUESTION: 30

 Debentures interest

Solution:

Similar Content

Related tests