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Question
Debenture certificate must be issued within ___________ months of allotment.
Options
three
six
nine
Solution
Debenture certificate must be issued within six months of allotment.
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RELATED QUESTIONS
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.
VKR Ltd. issued 975; 9% Debentures of Rs 500 each on 4-3-2016. Pass necessary journal entries for the issue of debentures under the following situations :
(a) When debentures were issued at a premium of 10% redeemable at a premium of 6%.
(b) When debentures were issued at a par redeemable at 9% 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.
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.
Pass the necessary journal entries for the issue of debentures in the following cases:
Rs 60,000, 12% debentures of Rs 100 each issued at a discount of 5% redeemable at Rs 105.
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.
State, with reasons, whether the following statements are True
or False (Any THREE) :
Convertible debentures can be converted into equity shares.
Define debenture. explain types of debentures.
While issuing _______ type of Debentures, company doesn’t give any undertaking for the repayment of money borrowed by issuing such debentures.
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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Record the necessary journal entries in the books of Sinco Ltd. assuming that the debentures have been issued:
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- At a premium of 10%.
On 1.4.2021 Y Ltd. invited applications for issuing 10,000, 9% debentures of ₹ 100 each at a discount of 6%. The entire amount was payable with application. Application for 12,000, 9% debentures were received. 9% debentures were allotted on pro-rata basis to all the applications. Excess money received with applications was refunded.
On 31.3.2022 the company decided to write off discount on issue of debentures according to the provisions of the Companies Act, 2013. On that date the company had ₹ 10,000 in its securities premium reserve account.
Pass necessary journal entries for the above transactions in the books of the company.
Pioneer Fitness Ltd. took over the running business of Healthy World Ltd. having assets of ₹ 10,00,000 and liabilities of ₹ 1,70,000 by:
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Pass the Journal entries in the books of Pioneer Fitness Ltd.
