Test: Issue Of Debentures - 3


26 Questions MCQ Test Fundamentals of Accounting for CA CPT | Test: Issue Of Debentures - 3


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QUESTION: 1

Which of the following statements is true?

Solution:
QUESTION: 2

Premium on redemption of debentures account is _______.

Solution:
QUESTION: 3

Which of the following statements is false?

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QUESTION: 4

Which of the following statements is false?

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QUESTION: 5

Debenture premium cannot be used to _____.

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QUESTION: 6

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:
QUESTION: 7

Loss on issue of debentures is treated as ____________.

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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

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: 10

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

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QUESTION: 11

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 = ?

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QUESTION: 12

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

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QUESTION: 13

Which of the following is false?

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QUESTION: 14

Which of the following is false with respect to debentures?

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QUESTION: 15

Debentures can be _________.I. Mortgage Debentures or Simple Debentures.

II. Registered Debentures Or Bearer Debentures.

III. Redeemable Debentures or Irredeemable Debentures.

IV. Convertible Debentures or Non-convertible Debentures.

Solution:
QUESTION: 16

Which of the following statements is false?

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QUESTION: 17

As per the Companies Act, “Interest accrued and due on debentures” should be shown

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QUESTION: 18

T Ltd. purchased land and building from U Ltd. for a book 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 is credited with _____________.

Solution:
QUESTION: 19

P Ltd. issued 5,000, 12% 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 = ?

Solution:
QUESTION: 20

Which of the following is true with regard to 10% Debentures issued at a discount of 20%?

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QUESTION: 21

Which of the following is false?

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QUESTION: 22

Discount on issue of debentures is a ____________.

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QUESTION: 23

On May 01, 2003, Y Ltd. issued 7% 40,000 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, 2004 = ?

Solution:
QUESTION: 24

Which of the following is false with respect to debentures?

Solution:
QUESTION: 25

Which of the following is false?

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QUESTION: 26

Which of the following is not a characteristic of Bearer Debentures?

Solution:

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