Practice Test

Q1) Which of the following is True ? Show Answer

Q2) Premium on redemption of debenture account is Show Answer

Q3) Which of the following is false ? Show Answer

Q4) Which of the following is false ? Show Answer

Q5) Debentures premium cannot be used to Show Answer

Q6) F ltd purchased Machinery from G company for a book value of Rs.4,00,000.The consideration was paid by issue of 10% debenture of Rs.100.each at a discount of 20%..The debenture account was credited with Show Answer

Q7) Loss on issue of debenture is treated as Show Answer

Q8) T ltd has issued 14% debenture of Rs.20,00,000 at a discount of 10% on April 01,2004 and the company pay's interest half-yearly on June 30,December 31 every year. On march 31,2006,the amount shown as 'interest accrued but not due 'in the balance sheet will be Show Answer

Q9) On May 01,2004 U ltd .issued 7%10,000 convertible debenture of Rs.100 each at a premium of 20%.Interest is payable on September 30 & March 31 every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit & loss account for the year ended March 31,2005=? Show Answer

Q10) Which of the following is True with respect to debentures ? Show Answer

Q11) W ltd issued 20,000, 8 % debenture of Rs.10 each at par ,which are redeemable after 5 years at a premium of 20%.The amount of loss on redemption of debenture to be written off every year =? Show Answer

Q12) When debentures are issued as collateral security ,the final entry for recording the transaction in the books is Show Answer

Q13) Which of the following is false ? Show Answer

Q14) Debentures can be I. Mortgage Debenture or Simple Debenture ; II.Registered Debenture or Bearer Debenture III.Redeemable Debentures or Irredeemable Debenture IV.Convertible Debenture or Non-convertible Debenture Show Answer

Q15) Which of the following statements is false ? Show Answer

Q16) As per the companies Act,' interest accrued & due on debenture 'should be shown Show Answer

Q17) L ltd purchased Land & building from G company for a book value of Rs.2,00,000.The consideration was paid by issue of 12% debenture of Rs.100.each at a discount of 20%..The debenture account was credited with Show Answer

Q18) V ltd issued 5,000, 12 % debenture of Rs.100 each at premium of 10% ,which are redeemable after 10 years at a premium of 20%.The amount of loss on redemption of debenture to be written off every year =? Show Answer

Q19) Which of the following is True with respect to 10% debentures issued at a discount of 20% ? Show Answer

Q20) which of the following is false ? Show Answer

Q21) Discount on issue of debenture is an Show Answer

Q22) On May 01,2003 U ltd .issued 7% 40,000 convertible debenture of Rs.100 each at a premium of 20%.Interest is payable on September 30 & March 31 every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit & loss account for the year ended March 31,2005=? Show Answer

Q23) Which of the following is False with respect to debentures ? Show Answer

Q24) Which of the following is false ? Show Answer

Q25) Which of the following is not a characteristics of Bearer Debenture ? Show Answer

Q26) debenture is Show Answer

Q27) debenture contains provision as regards Show Answer

Q28) which debenture are secured by a charge Show Answer

Q29) debenture interest Show Answer

Q30) fully Secured debentures are those which are secured Show Answer

Q31) convertible debentures are those debentures which are Show Answer

Q32) interest is paid to the person who produces the interest coupon attached to debenture in case of Show Answer

Q33) from the point of view of mode of redemption , the debenture are classified as Show Answer

Q34) from the point of view of tenure , the debenture are classified as Show Answer

Q35) from the point of view of security , the debenture are classified as Show Answer

Q36) from the point of view of registration , the debenture are classified as Show Answer

Q37) which of the following is false ? Show Answer

Q38) which of the following is false ? Show Answer

Q39) which of the following is false ? Show Answer

Q40) which of the following is / are true with respect to debenture Show Answer

Q41) debenture trustees are to be appointed in case of issue of Show Answer

Q42) who is not eligible to be appointed as debenture trustee Show Answer

Q43) in case of an issue of a debenture of Rs.100 at Rs.110, Rs.10 is to be credited to Show Answer

Q44) in case of an issue of a debenture of Rs.100 at Rs.100, but redeemable at Rs.106 ,Rs.6 is to be is to be Show Answer

Q45) debenture account is Show Answer

Q46) debenture premium account is Show Answer

Q47) debenture redemption premium account is Show Answer

Q48) in the balance sheet of a company , debenture account appears under the head Show Answer

Q49) in the balance sheet of a company , debenture premium account appears under the head Show Answer

Q50) in the balance sheet of a company , debenture redemption premium account appears under the head Show Answer

Q51) in the balance sheet of a company , loss on debenture account appears under the head Show Answer

Q52) A ltd took over the asset of Rs.6,60,000 & liabilities of Rs.80,000 of B ltd .for an agreed purchase consideration of Rs.6,00,000 payable 10% in cash & the balance by the issue of 15% debenture of Rs..100 each at 10% discount.the number of debenture to be issued is Show Answer

Q53) A ltd took over the asset of Rs.3,00,000 & liabilities of Rs.10,000 of B ltd .for an agreed purchase consideration of Rs.2,70,000 to be satisfied by the issue of 15% debenture of Rs.100 each at 20% premium Show Answer

Q54) R ltd purchased Land & building from S company for a book value of Rs.4,00,000.The consideration was paid by issue of 12% debenture of Rs.100.each at a discount of 20%..The debenture account was credited with Show Answer

Q55) X ltd has issued 10,000,12% debenture 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 debenture to be written off every year Show Answer

Q56) W ltd has issued 20,000, 8% debenture of Rs.10 each at par which are redeemable after 5 years at a premium of 20% . The amount of loss on redemption of debenture to be written off every year Show Answer

Q57) interest on debenture in calculated on Show Answer

Q58) X ltd has issued 500, 15% debenture of Rs.100 each at a discount of 10% which are redeemable after 4 years at a premium of 5% . The amount of annual interest of debenture is Show Answer

Q59) in the balance sheet of a company ,interest accrued & due on debenture appears under the head Show Answer

Q60) in the balance sheet of a company ,interest accrued but not due on debenture appears under the head Show Answer

Q61) Z ltd .issued 15% 500 debenture of Rs.100 each on 1-05-2006 at a discount of 10% redeemable at a premium of 5% after 4 years ..Interest is payable half yearly on June 30 & dec. 31 every year. the amount of interest paid for the year ended March 31,2007 = ? Show Answer

Q62) Z ltd .issued 15% 500 debenture of Rs.100 each on 1-05-2006 at a discount of 10% redeemable at a premium of 5% after 4 years ..Interest is payable half yearly on June 30 & dec. 31 every year. the amount of interest debited to profit & loss account for the year ended March 31,2007 = ? Show Answer

Q63) Z ltd .issued 15% 500 debenture of Rs.100 each on 1-05-2006 at a discount of 10% redeemable at a premium of 5% after 4 years ..Interest is payable half yearly on June 30 & dec. 31 every year. the amount of interest accrued but not due to be shown in the b/s as at March 31,2007 = ? Show Answer

Q64) which of the following is not true with regards to 10% debentures issued at a discount of 20% ? Show Answer

Q65) A -------- is a bond issued by Company under its seal, acknowledging a debt and containing provisions as regards repayment of the principle and interest. Show Answer

Q66) Debenture holder are - Show Answer

Q67) Debenture can be -
I. Mortgage Debentures or Bearer Debentures.
II Registered Debentures or Bearer Debentures
III. Redeemable Debentures or Irredeemable Debentures.
IV. Convertible Debenture or Non-convertible Debentures. Show Answer

Q68) Which of the following is not a characteristic of Bearer Debenture? Show Answer

Q69) Debentures which are secured by a charge upon some or all assets of the Company are known as - Show Answer

Q70) Non-convertible Debenture refer to - Show Answer

Q71) Which of the following is incorrect ? Show Answer

Q72) Which of the following statement false? Show Answer

Q73) In the event of liquidation of the Company the Debenture holder have prior right for - Show Answer

Q74) A Debentures holder gets Show Answer

Q75) Interest payable holder gets - Show Answer

Q76) Which of the following is false? Show Answer

Q77) Which of the following statement is not true? Show Answer

Q78) As per the Companies Act, "Interest accrued and not due Debentures" should be shown - Show Answer

Q79) As per the Companies Act "Interest accrued and due on Debentures" should be shown - Show Answer

Q80) Income tax deducted from interest paid on Debentures is shown as - Show Answer

Q81) A Company issued 1,000, 12% Debentures of Rs.100 each at par redeemable at 10% premium. 12% stands for - Show Answer

Q82) T Ltd has issued 15% Debentures of Rs.20,00,000 at a discount of 10% on 1st April 2008 and the Company pays interest half yearly on June 30th, and Debentures 31 every year.
On 31st March 2009, the amount shown as "interest accrued but not due" in the Balance Sheet will be - Show Answer

Q83) T Ltd issued 14% Debentures of Rs.10,00,000 at a discount of 10% on 1st April 2008 and the Company pays interest half yearly on June 30, and December 31 every year. On 31st March 2009, the amount shown as "interest due but not paid" in the Balance Sheet will be - Show Answer

Q84) On 1st May 2008, Ltd issued 6%, 10,000 Convertible Debentures of Rs.100 each at a Premium of 20%. Interest is payable on 30th September and 31st March every year. Assuming that the interest runs from the date of issue, the amount runs from the date of issue, the amount of interest expenditure debited to P and L A/c for the year ended 31st March 2009 will be - Show Answer

Q85) On 1st May 2008, Y Ltd issued 7% 40,000 convertible Debentures of Rs.100 each at a Premium of 20%. Interest is Payable on Septembers 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to P and L A/c for the year ended 3st March 2009 - Show Answer

Q86) On 1st June 2008, Harsh Ltd. issued 4,000 9% convertible Debentures of Rs.100 each at a Premium of 10%. Interest is payable on 30th Sept. and 31st March every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to P and L A/c for the year ended 31st March 2009 will be - Show Answer

Q87) The interest on Debentures for the first year ending 31.03.2008 will be - Show Answer

Q88) The interest on Debentures for the second year ending 31.03.2010 will be - Show Answer

Q89) The interest on Debentures for the third year third year ending 31.03.2010 will be - Show Answer

Q90) Debentures can be issued - Show Answer

Q91) Which of the following is incorrect with respect of Debentures? Show Answer

Q92) Which of the following statements is false? Show Answer

Q93) Which of the following Statements is false? Show Answer

Q94) The underwriting commission in case of issue of Debentures can not exceed - Show Answer

Q95) Kena Ltd issued 10,000, 12% Debentures of Rs.100 each at a discount of 10% payable in full on application by 31st March, 2009.Application were received for 12,000 Debentures. Debentures were allotted on 9th June,2009. The amount of excess money refunded on the same date will be - Show Answer

Q96) When Debentures are issued as collateral security to a banker, which account will be debited - Show Answer

Q97) When Debentures are issued as collected security, which entry was has to be passed - Show Answer

Q98) When Debentures are issued as collateral security, interest is paid on - Show Answer

Q99) Debentures premium cannot be used to - Show Answer

Q100) Premium on issue of Debentures can be utilized for writing off - Show Answer

Q101) Premium on redemption of Debenture is generally provided at the time of - Show Answer

Q102) Sure Ltd issued 5,000, 15% Debentures of Rs.100 each at a premium of Rs.10 each. These Debentures were to be redeemed at a premium of Rs.4 each after 5 years. The amount to be credited to the Debentures premium account will be - Show Answer

Q103) Koina Ltd. issued 15,00,000, 12 % Debentures of Rs.50 each at premium of 10% payable as Rs.20 on application and balance on allotment. Debentures are redeemable at par after 6 years. All the money due on allotment was called up and received. The amount of premium will be - Show Answer

Q104) Which of the following is true with regard to 10% Debentures issued at a discount of 20% ? Show Answer

Q105) Loss on issue of Debentures is treated as - Show Answer

Q106) Discount on issue of Debenture is a - Show Answer

Q107) Loss on issue of debentures is generally written off in - Show Answer

Q108) Unless written off, the loss on issue of Debenture is shown - Show Answer

Q109) A Company issue 14% Debentures of Rs.10,00,000 at a discount of 10%. The discount allowed will be treated in the account books as - Show Answer

Q110) Gama Ltd issued 10,000, 10% Debentures of Rs.100 each at a discount of 10%. The entire amount is payable on application were received for 12,000 Debentures. The allotment of Debentures was made on 10th October 2008. The amount which should be credited to the Debentures account on 10th October, 2008 will be - Show Answer

Q111) W Ltd issued 40,000, 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 Debentures to be written of every years will be - Show Answer

Q112) Asha 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 - Show Answer

Q113) A Ltd issued Rs.1,00,000 12% Debentures at 5% discount redeemable at 5% premium after 10 years. Loss on issue of Debentures will be - Show Answer

Q114) X Ltd issued 1,00,000 Debentures of Rs.100 each at a discount of 4% redeemable after 5 years at a premium of 6%. Loss on issue of Debenture will be - Show Answer

Q115) A Company issued Debentures of the face value of Rs.1,00,000 at a discount of 6% on 1st January 2009. These Debentures are redeemable by annual drawings of Rs.20,000 made on 31st December each year. The Directors decided to write off discount based on the Debentures outstanding each year. Amount of discount to be written off in the 5th year will be - Show Answer

Q116) Deep Ltd issued 1,00,000 7% Debentures of Rs.100 each at a discount of 4% redeemable after 5 year at a premium of 6%. Loss of issues of debentures is - Show Answer

Q117) K Ltd issued 5,000, 12% Debentures of Rs.100 each at a discount of 5% repayable after 5 years at a premium of 5%. The loss on issue of Debentures to be written off for 5 years - Show Answer

Q118) L Ltd issued Rs.1,00,000, 12% Debentures [par value of Rs.100] each at a discount of 5% on 1st January 2009 repayable by 4 equal annual drawings at a premium of 5%. The loss on issue of Debentures to be written off for 4 calendar years - Show Answer

Q119) The amount of discount to be written off at the end of each year for the first 5 years is - Show Answer

Q120) The amount of discount to be written off at the end of each year for the next 5 years is - Show Answer

Q121) The amount of discount to be written off at the end of each year for the last 5 years is - Show Answer

Q122) The amount of discount to be written off at the end of the first years is - Show Answer

Q123) The amount of discount to be written off at the end of the second year is - Show Answer

Q124) The amount of discount to be written off at the end of the third year is - Show Answer

Q125) The amount of discount to be written off at the end of the fourth year is - Show Answer

Q126) The amount of discount to be written off at the end of the fifth year is - Show Answer

Q127) If the redeemable commences from 31st March 2010 - Show Answer

Q128) If the redemption commences from 31st March 2011 - Show Answer

Q129) If the redemption commences from 31th March 2012 - Show Answer

Q130) C Ltd issued Rs.1,00,000 Debentures at a discount of 6% on 1st January 2009 repayable by 5 equal annual drawing. Discount on issue of Debentures written off in the 5 calendar years - Show Answer

Q131) E Ltd issued 1,00,000 Debentures at discount of 6% on 1st April, 2009 repayable by 5 equal annual drawing. Discount on issue of debentures written off in the 5 Calendar years - Show Answer

Q132) F Ltd issued Rs.1,00,000, 10% Debentures on 1st April, 2009 at a discount of 5% payable in annual drawings of Rs.25,000 each on 31st March every year. Calculate the amount of discount to be written off each year. The accounting year of the Company ends on 31st December. Show Answer

Q133) G Ltd. issued 12% Debentures of the face value of Rs.1,20,000 at a discount of 6% on 1st January, 2009 repayable by annual drawings of Rs.40,000 commencing from the end of 3rd year. Discount on issue of Debentures written off every year for 5 years assuming that the account are closed on 31th December. Show Answer

Q134) If Debentures are issued as consideration for purchase of any Fixed Asset, the entry is - Show Answer

Q135) G Ltd Purchased Land and Building from H 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 - Show Answer

Q136) F Ltd purchased Machinery from G Company for a book value of Rs.4,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each discount of 20%. The Debentures account is credited by - Show Answer

Q137) How many Debentures will a Company be required to issue for satisfying the purchase consideration of Rs.28,80,000, if Debentures of Rs.100 are issued at a premium of 20 per Debenture? Show Answer

Q138) J Ltd purchased a Building for Rs.9,00,000 and consideration was paid by issuing 12% Debentures of Rs.100 each at 10% discount. The number of Debentures issued were - Show Answer

Q139) K Ltd brought a Machinery for Rs.4,00,000 payable as to Rs.1,30,000 in cash and the balance by issue of 12% Debentures of Rs.100 each at 10% discount. Number of Debentures issued is - Show Answer

Q140) X Ltd purchased a plant for Rs.20,000 payable Rs.6,500 in cash and balance by issue of 13% Debentures of Rs,100 each at a discount of 10%. How many Debentures would be required to be issued to the Vendor Show Answer

Q141) The Company has - Show Answer

Q142) The Debentures were issued - Show Answer

Q143) Debentures can be redeemed out of - Show Answer

Q144) Debentures cannot be redeemed at - Show Answer

Q145) Premium or redemption of Debentures is a - Show Answer

Q146) Which of the following statements is true ? Show Answer

Q147) when Debentures are to be redeemed at premium an extra entry has to be made at the time of issue of Debentures. Which A/c should be credited in this entry ? Show Answer

Q148) If Debentures are issued at discount and redeemed premium - Show Answer

Q149) Green Ltd issued 5,000, 6% Debentures of Rs.100 each at a discount of 5% repayable after 5 years at a premium of 5%. Total loss on issue of Debentures will be - Show Answer

Q150) Ravi Ltd issued 1,40,00,000, 9% Debentures of Rs.100 each at a discount of 6%, redeemable at a premium of 5% after 3 year payable as Rs.50 on application and Rs.44 on allotment. Total amount of discount/loss on issue of Debenture will be - Show Answer

Q151) Debentures have been issued at a discount of - Show Answer

Q152) Debentures are redeemable at a premium of - Show Answer

Q153) At the time of issue, entry to be passed will be - Show Answer

Q154) If the Debentures were initially issued at 10% discount, at the time of issue, the entry to be passed will be ? Show Answer

Q155) If the Debentures were issued at 10% premium but redeemed at par, entry will be - Show Answer

Q156) Win 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 - Show Answer

Q157) Alfa Ltd issued 20,000,8% Debentures of Rs.10 each at par. The Debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of Debenture should be - Show Answer

Q158) P Ltd issued 5,000, 12% Debentures of Rs.100 each at a premium of 10%, which are redeemable after 10 year at a premium of 20%. The amount of loss on redemption of Debentures to be Written off every year is - Show Answer

Q159) ABC Co. Ltd issued Rs.1,00,000, 11% Debentures at 95% redeemable at the end of 10 years at 102%. The entry is - Show Answer

Q160) ABC Co. Ltd issued Rs.1,00,000, 11% Debentures at 95% redeemable at the end of 10 years at 98% Show Answer

Q161) P Ltd issued 10,000, 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 will be - Show Answer

Q162) W Ltd issued 20,000, 8% Debentures or Rs.10 each at par, which are redeemable after 5 year at a premium of 20%. The amount of loss on redemption of Debentures to be written off every year - Show Answer

Q163) A Ltd issued 10,000, 12% Debentures of Rs.10 each at par which are redeemable in 5 years at the end of each year in equal lots at a premium of 30%. The amount of loss on redemption of Debentures to be written off in 4th and 5th year will be - Show Answer

Q164) Profit on cancellation of own Debentures is transferred to - Show Answer

Q165) Which of the following statement is false? Show Answer