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State to Whether the Following Statement is True/False. - Book Keeping and Accountancy

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Question

State to whether the following statement is True/False.
The issue of debentures less than face value of debenture to termed as issue of debentures at discount.

Options

  • True

  • False

MCQ
True or False

Solution

True

Explanation: When debentures are issued at a price less than their face value, it is known as ‘issue of debentures at discount’.

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Chapter 11: Company Accounts Part - 2 (Accounting for Debentures) - Exercise 4 [Page 373]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 11 Company Accounts Part - 2 (Accounting for Debentures)
Exercise 4 | Q 4 | Page 373

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RELATED QUESTIONS

On 1.4.2015, KVK Ltd. issued 15,000, 9% debentures of Rs 100 each at a discount of 7%, redeemable t a premium of 10% after 10 years. The company closes its books on 31st March every year. Interest on 9%debentures is payable on 30th September and 31st March every year. The rate of tax deducted at source is 10%.

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Answer in a sentence only.
What is meant by ‘Issue of debenture at discount and redeemable at premium’?


Write one word/term/phrase which can substitute the following
The debentures where a charge is created on the assets of company.


Write one word/term/phrase which can substitute the following
The issue of debentures more than face value of debentures


Select most appropriate alternative from those given below :
The issue of debentures less than the face value is called ___________.


Tanagi Ltd. issued Rs 10,000 12% debentures of Rs 100 each at a discount of 5% Payable as follows:
On Application Rs 40
On Allotment Rs 55
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Amar Ltd. purchased assets of the book value of Rs 99,000 from Abhi Ltd. It was agreed that purchase consideration to be paid by issuing 11% Debentures of Rs 100 each Assume debentures have been issued.
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3. At Premium of 10%
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