All Courses
Get the App Signup / Login
Sign in Open App
Commerce Exam  >  Commerce Notes  >  Accountancy Class 12  >  Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies)

Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) | Accountancy Class 12 - Commerce PDF Download

Chapter - Issue of Debentures

Important Questions

Q1. ABC Ltd. Purchased for cancellation its own 5,000, 9% Debentures of100 each for 95 per debenture. The brokerage charges15,000 were incurred. Calculate the amount to be transferred to capital reserve. 

(1)

Q2. Where is the debenture redemption reserve is shown in the balance sheet? 

(1)

Q3. Rule 18 (7) of Companies (Share Capital and Debentures) Rules, 2014 exempts the following types of Companies from creating DRR__________________ & ____________________. 

(6)

Q4. Explain with an imaginary example how issue of debenture as collateral security is shown in the balance sheet of a company when it is recorded in the books of accounts . 

(3)

Q5. King Ltd took over Assets of 25,00,000 and liabilities of 6,00,000 of Queen Ltd. King Ltd paid the purchase consideration by issuing 10,000 debentures of 100 each at a premium of 10% and 11,00,000 by Bank Draft. Pass necessary journal entries. 

(3)

Q6. Thandak Refrigerators Limited purchased for cancellation its own 5,000; 6% Debentures of Rs.200 each at Rs. 190 per debenture. It also purchased another lot of 600, 6% debentures of the same series at Rs.186 per debenture expenses on the purchase incurred amounted to Rs.1000. Pass the necessary Journal entries. 

(3)

Q7. Ruchi Ltd issued 42,000, 7% Debentures of 100 each on 1st April, 2011, redeemable at a premium of 8% on 31st March 2015. The Company decided to create required Debenture Redemption Reserve on 31st March 2014. The company invested the funds as required by law in a fixed deposit with State Bank of India on 1st April, 2014 earning interest @10% per annum. Tax was deducted at source by
 the bank on interest @10% per annum. Pass necessary Journal Entries regarding issue and redemption of debentures. 

(4)

Q8. X Ltd. redeemed Rs.20,00,000, 6% debentures at a premium of 5% out of profits on 31-3-2015. The company had a Debenture Redemption Reserve of Rs.2,50,000. Assuming that the Company has the required balance in Debenture Redemption Investment Account, pass necessary journal entries for the redemption of debentures.

(4)

Q9. X ltd. issued 6,000, 12% debentures of Rs.200 each on April 01, 2010 at a discount of 15% redeemable at a premium of 20%. Give journal entries relating to the issue of debentures and debentures interest for the period ending March 31, 2011 assuming that interest is paid half yearly on September 30 and March 31 and tax deducted at source is 20%. Pass necessary journal entries

(4)

Q10. X ltd. Purchased assets of Rs.6,00,000 and liabilities of Rs.1,00,000 at an agreed value of Rs.5,50,000 on 30/6/2011 from Y ltd. The company issued 6% debentures of Rs.100 each at a premium of 10% to redeemed on 30/6/15 at a premium of 5%. Pass necessary journal entries for the redemption of debentures 

(6)

The document Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) | Accountancy Class 12 - Commerce is a part of the Commerce Course Accountancy Class 12.
All you need of Commerce at this link: Commerce
42 videos|168 docs|43 tests
Join Course for Free

Top Courses for Commerce

FAQs on Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) - Accountancy Class 12 - Commerce

1. What are debentures?
Ans. Debentures are long-term debt instruments issued by companies and government organizations to raise funds from the public. These instruments carry a fixed rate of interest, which is paid to the debenture holders at regular intervals. Debentures are usually secured against the company's assets and are redeemable after a specific period, as mentioned in the debenture agreement.
2. How are debentures issued by companies?
Ans. Companies can issue debentures in two ways - through a public issue or a private placement. In a public issue, the company offers debentures to the public through a prospectus, and anyone can subscribe to it. In a private placement, the company offers debentures to a select group of investors, such as banks, financial institutions, and high-net-worth individuals.
3. What is the accounting treatment for the issue of debentures?
Ans. The issue of debentures by a company is recorded in its books of accounts through the following journal entry: Debenture A/c Dr. To Bank A/c The amount received from the issue of debentures is credited to the Bank account, and the debenture account is debited. The company also needs to record the interest paid on the debentures in its books of accounts.
4. What are the types of debentures issued by companies?
Ans. Companies can issue various types of debentures, such as convertible debentures, non-convertible debentures, secured debentures, unsecured debentures, and redeemable debentures. Convertible debentures can be converted into equity shares at a later stage, while non-convertible debentures cannot be converted into equity shares. Secured debentures are backed by the company's assets, while unsecured debentures are not secured against any assets. Redeemable debentures are redeemed by the company after a specific period, while irredeemable debentures are not redeemed by the company.
5. What is the role of a debenture trustee?
Ans. A debenture trustee is an independent entity appointed by a company to protect the interests of the debenture holders. The trustee ensures that the company complies with the debenture agreement terms and conditions, such as timely payment of interest and principal amount. The trustee also monitors the company's financial performance and takes necessary action on behalf of the debenture holders, such as filing a legal case against the company in case of default.
Related Exams
About this Document
11.2K Views
4.98/5 Rating
Dec 31, 2024 Last updated
Document Description: Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) for Commerce 2024 is part of Accountancy Class 12 preparation. The notes and questions for Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) have been prepared according to the Commerce exam syllabus. Information about Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) covers topics like and Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies).
Introduction of Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) in English is available as part of our Accountancy Class 12 for Commerce & Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) in Hindi for Accountancy Class 12 course. Download more important topics related with notes, lectures and mock test series for Commerce Exam by signing up for free. Commerce: Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) | Accountancy Class 12 - Commerce
Description
Full syllabus notes, lecture & questions for Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) | Accountancy Class 12 - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus for Accountancy Class 12 | Best notes, free PDF download
Information about Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies)
In this doc you can find the meaning of Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) defined & explained in the simplest way possible. Besides explaining types of Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) theory, EduRev gives you an ample number of questions to practice Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) tests, examples and also practice Commerce tests
42 videos|168 docs|43 tests
Join Course for Free
Download as PDF
Explore Courses for Commerce exam

Top Courses for Commerce

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

practice quizzes

,

mock tests for examination

,

Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) | Accountancy Class 12 - Commerce

,

Summary

,

ppt

,

Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) | Accountancy Class 12 - Commerce

,

past year papers

,

Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) | Accountancy Class 12 - Commerce

,

Viva Questions

,

study material

,

Semester Notes

,

Extra Questions

,

Important questions

,

shortcuts and tricks

,

Free

,

video lectures

,

Exam

,

Previous Year Questions with Solutions

,

pdf

,

MCQs

,

Objective type Questions

,

Sample Paper

;
Additional Information about Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) for Commerce Preparation

Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) Free PDF Download

The Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) is an invaluable resource that delves deep into the core of the Commerce exam. These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective. With the help of these notes, you can grasp complex subjects quickly, revise important points easily, and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner, allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material, or toppers' notes, this PDF has got you covered. Download the Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) now and kickstart your journey towards success in the Commerce exam.

Importance of Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies)

The importance of Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) cannot be overstated, especially for Commerce aspirants. This document holds the key to success in the Commerce exam. It offers a detailed understanding of the concept, providing invaluable insights into the topic. By knowing the concepts well in advance, students can plan their preparation effectively. Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.

Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) Notes

Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) Notes offer in-depth insights into the specific topic to help you master it with ease. This comprehensive document covers all aspects related to Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies). It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation. Practice papers and question papers enable you to assess your progress effectively. Additionally, the paper analysis provides valuable tips for tackling the exam strategically. Access to Toppers' notes gives you an edge in understanding complex concepts. Whether you're a beginner or aiming for advanced proficiency, Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) Notes on EduRev are your ultimate resource for success.

Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) Commerce

The "Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) Commerce Questions" guide is a valuable resource for all aspiring students preparing for the Commerce exam. It focuses on providing a wide range of practice questions to help students gauge their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation. The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level. Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.

Study Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) on the App

Students of Commerce can study Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) alongwith tests & analysis from the EduRev app, which will help them while preparing for their exam. Apart from the Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies), students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc. The EduRev App will make your learning easier as you can access it from anywhere you want. The content of Important Questions - Issue of Debentures (Accounting for Partnership Firms and Companies) is prepared as per the latest Commerce syllabus.
© EduRev
Education Revolution
Signup to see your scores go up
within 7 days!
Takes less than 10 seconds to signup