Accountancy · Class 12 Commerce
Ch 10Accounting for Debentures — Class 12 Accountancy, concept-first.
Every question solved the concept-first way: concept → why this formula → step-by-step.
Key concepts
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Issue of Debentures for Cash and for Consideration other than Cash
Debentures may be issued for cash — at par, at a premium or at a discount — with the usual application, allotment and call entries, and may be redeemable at par or at a premium. They may also be issued for consideration…
Most relevant Q&A
- Show Journal entries of the following issue of Debentures: (i) Issued 1,000, 10% Debentures of ₹ 100 each at a premium of 5%. (ii) Issued 2,…Preview
- Light Ltd. purchased the following assets from Black Ltd.: Plant and Machinery ₹ 2,00,000, Land and Building ₹ 5,00,000. Black Ltd. was paid…Preview
- Joy Ltd. purchased the following assets from the Bijoy Ltd.: Building ₹ 4,00,000, Machinery ₹ 2,00,000, Stock ₹ 1,50,000. Bijoy Ltd. was pai…Preview
- X Ltd. purchased assets of the book value of ₹ 5,00,000 and took over the liabilities of ₹ 50,000 from Z Ltd. It was agreed that the purchas…Preview
- Premium on issue of Debenture is (A) an asset (B) an income (C) an expense (D) a liability.Preview
Questions & Answers
Open any question to start with the concept, not the answer.
+−Sample & Board questionsi16 questions
- Q1Show Journal entries of the following issue of Debentures: (i) Issued 1,000, 10% Debentures of ₹ 100 each at a premium of 5%. (ii) Issued 2,…Preview
- Q2The account which is to be debited to close the interest on Debenture Account is (a) Interest on Debenture Account. (b) Debenture Interest A…Preview
- Q3Light Ltd. purchased the following assets from Black Ltd.: Plant and Machinery ₹ 2,00,000, Land and Building ₹ 5,00,000. Black Ltd. was paid…Preview
- Q4Debenture is (a) own capital. (b) current liabilities. (c) loan capital. (d) none of these.Preview
- Q5On 1st April, 2015, Fairdeal Ltd. issued 10,000, 10% Debentures of ₹ 100 each at a premium of 5%. Interest on debentures is payable on 30th…Preview
- Q6Interest paid on Debenture is (a) charge against profit. (b) appropriation of profit. (c) liability. (d) None of these.Preview
- Q7Y Ltd. purchased equipment worth ₹ 1,99,500 and issued debentures to the vendor as purchase consideration. Pass necessary Journal entries in…Preview
- Q8Joy Ltd. purchased the following assets from the Bijoy Ltd.: Building ₹ 4,00,000, Machinery ₹ 2,00,000, Stock ₹ 1,50,000. Bijoy Ltd. was pai…Preview
- Q9Debentureholders are (a) owners of the company (b) debtors of the company (c) creditors of the company (d) none of these.Preview
- Q10If debentures are to be redeemed in four equal instalments, discount on issue of debentures account will be written off in the ratio of (a)…Preview
- Q11XYZ Ltd. purchased equipment worth ₹ 19,950 and issued Debentures to the vendor as purchase consideration. Pass necessary Journal entries in…Preview
- Q12Discount on Issue of Debenture Account is (a) Fixed Asset. (b) Current Asset. (c) Fictitious Asset. (d) None of these.Preview
- Q13Interest paid on debenture is (a) Charge against profit. (b) Appropriation of profit. (c) Liability. (d) Asset.Preview
- Q14X Ltd. purchased assets of the book value of ₹ 5,00,000 and took over the liabilities of ₹ 50,000 from Z Ltd. It was agreed that the purchas…Preview
- Q15Premium on issue of Debenture is (A) an asset (B) an income (C) an expense (D) a liability.Preview
- Q16Z Ltd. purchased a machine of Rs. 3,99,000 and issued debentures to the vendor (S Ltd.) as purchase consideration. Pass necessary journal en…Preview