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प्रश्न
State, with reasons, whether the following statements are True
or False (Any THREE) :
Convertible debentures can be converted into equity shares.
उत्तर
True
Reasons: (1) Convertible Debentures are those which can be converted either partly or wholly into equity shares after the completion of a definite period.
(2) The rate of interest and date of conversion is decided at the time of issue.
(3) The interest is paid up to the date of conversion.
(4) On conversion the debenture holders are eligible for dividends and other rights and privileges of shareholders.
(5) A good company’s convertible debentures are very popular in the market.
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संबंधित प्रश्न
TRK Ltd. issued 767, 9% debentures of Rs.100 each on 1-1-2016. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at a discount of 3% and were redeemable at a premium of 7%.
(b) When debentures were issued at a premium of 4% and were redeemable at a premium of 9%.
KTR Ltd., issued 365, 9% Debentures of `1,000 each on 4-3-2016. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at par redeemable at a premium of 10%.
(b) When debentures were issued at 6% discount redeemable at 5% premium.
On 2.3.2016 L and B Ltd. issued 635, 9% debentures of Rs.500 each. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at 5% discount, redeemable at 10% premium.
(b) When debentures were issued at 12% premium, redeemable at 6% premium.
Pass the necessary journal entries for an issue of 1,000, 7% Debentures of `100 each in the following cases:
1) Issued at 5% premium redeemable at a premium of 10%.
2) Issued at a discount of 5% redeemable at par.
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Pass the necessary journal entries for the issue of debentures in the following cases:
Rs 30,000, 12% debentures of Rs 100 each issued at a discount of 5% redeemable at par.
A company with share capital must issue ...................... shares.
Match the correct pairs of words from group A and B :
| Group A | Group B |
| (a) Dividend | (1) Security about repayment |
| (b) Financial plan | (2) 1875 |
| (c) Secured debentures | (3) Return on investment of shareholders |
| (d) American depository receipt | (4) 1857 |
| (e) Establishment of Bombay Stock Exchange | (5) Management of business funds |
| (6) Repaid on maturity | |
| (7) Debenture certificate holder | |
| (8) Advance programming of financial management | |
| (9) A receipt is traded in a country other than the USA | |
| (10) A receipt is traded in the USA |
Write notes on Procedure for redemption of debentures.
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Explain the secretarial procedure regarding issue of debentures.
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Elite Ltd. issued 20,000, 9% Debentures of ₹ 100 each at a discount of 10%, redeemable at a premium. On issue of these debentures, 'Loss on Issue of debentures account' was debited with ₹ 4,00,000. The premium on redemption of debentures is ______.
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- Cheque for ₹ 50,000.
Pass the Journal entries in the books of Pioneer Fitness Ltd.
