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MCQs for Issue of Debentures
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MCQs for Issue of Debentures
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25 Questions

1. On 1st April 2007, Sunrise Limited issued 5,000, 8% debentures of ₹100 each at a discount of 5%. What will be the total amount of interest for the year ending 31st March 2008? .
2. Premium on Redemption of Debentures Account is :
3. Issued 4,000, 12% debentures of ₹100 each at a premium of 4%, redeemable at a premium of 10%. In such case : k
4. X Ltd. acquired assets of ₹20 lakhs and took over creditors of ₹20 thousand from FLtd. A Ltd. issued 8% debentures of ₹200 each at a discount of 10% as purchase consideration. Number of debentures issued will be :
5. Debentures represent the :
6. X Ltd. purchased a building for ₹60,00,000 payable as 20% in Cash and balance by allotment of 8% debentures of ₹500 each at a premium of 20%. Number of debentures issued will be :
7. Sunrise Ltd purchased a building for ₹5,00,000 payable as 15% in cash and balance by allotment of 9% debentures of ₹100 each at a premium of 25%. Number of debentures issued will be :
8. Globe Ltd. issues 20,000, 9% debentures of ? 100 each at a discount of 5% redeemable at the end of 5 years at a premium of 6%. For what amount ‘Loss on Issue of Debentures Account’ will be debited?
9. On liquidation of company, principal amount of debentures is returned :
10. A Ltd. issued 1,000, 10% debentures of ₹100 each at a premium of 5%. What will be the total amount of interest for one year :
11. Which of the following is not a characteristic of Bearer Debentures?
12. Issued 5,000, 12% debentures of ₹100 each at a discount of 2%, redeemable at a premium of 5%. In such case :
13. Debentures of a Company can be issued :
14. The debentures whose principal amount is not repayable by the company during its life time, but the payment is made only at the time of Liquidation of the company, such debentures are called :
15. Premium received on issue of debentures may be utilised for
16. Q.21. Debentures issued as collateral security will be debited to :
17. Which of the following statements is false?
18. When debentures of ₹1,00,000 are issued as Collateral Security against a loan of ₹1,50,000, the entry for issue of debentures will be :
19. ‘A’ Fimited purchased the assets from ‘B’ Limited for ₹5,40,000. ‘A’ Limited issued 10% debentures of ₹100 each at 10% discount against the payment. The number of debentures received by ‘B’ Limited will be :
20. Debenture Application Account is in the natutre of
21. If Vendors are issued debentures of ₹4,40,000 in consideration of assets of ₹5,00,000 and liabilities of ₹1,00,000, the balance of ₹40,000 will be debited to:
22. On issue of debentures as a collateral security, which account is credited?
23. Interest payable on debentures is :
24. ‘A’ Limited purchased the assets from ‘B’ Limited for ₹5,40,000. ‘A’ Limited issued 10% debentures of ₹100 each at 20% premium against the payment. The number of debentures received by ‘B’ Limited will be :
25. ‘A’ Limited purchased the assets from ‘B’ Limited for ₹8,10,000. ‘A’ Limited issued 10% debentures of ₹100 each at 10% discount against the payment. The number of debentures received by ‘B’ Limited will be :

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