Issue and Redemption of Debentures Test 1

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Issue and Redemption of Debentures Test 1

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Question 1
1 / -0

Debenture Premium Account is a -

A
Personal Account

B
Real Account

C
Nominal Account

D
None of these
Question 2
1 / -0

From the point of view of tenure, the debentures are classified as -

A
Secured and unsecured Debentures

B
Redeemable Debentures and Irredeemable Debentures

C
Convertible Debentures and Non-convertible Debentures

D
Registered Debentures and Bearer Debentures
Question 3
1 / -0

On $1$ st April X Lts. issued Rs $1,00,000 15\%$ Debentures of Rs $10$ each at $94\%$ redeemable at per as follows:

Yearend Nominal value of Total Debentures to redeemed
2 10%
3 20%
4 30%
5 40%
The amount of discount to be written off each year assuming that the company closes its accounts on financial year basis is -

A
Rs $2,400, Rs1,800, Rs 1,200, Rs 600$

B
$Rs 1,500, Rs 1,500, Rs 1,350, Rs 1,050, Rs 600$

C
$Rs1,200$ each year

D
None of these
Question 4
1 / -0

On $1$ st April X Lts. issued Rs $1,00,000 15\%$ Debentures of Rs $10$ each at $94\%$ redeemable at per as follows:

Year beginning Nominal value of Total Debentures to redeemed
2 10%
3 20%
4 30%
5 40%
The amount of discount to be written off each year assuming that the company closes its accounts on financial year basis is -

A
Rs $1,500$ each year

B
Rs $1,200$ each year

C
Rs $2,000, Rs 1,800, Rs 1,400, Rs 800$

D
None of these
Question 5
1 / -0

X.Ltd. issued Rs $1,00,000$ $12\%$ debentures of Rs $100$ each at a premium of $10\%$ , which are redeemable after $10$ years at a premium of The amount of loss on redemption of debentures to be written off every year= ?

A
Rs $10,000$

B
Rs $30,000$

C
Rs $20,000$

D
Rs $40,000$
Question 6
1 / -0

X. Ltd. issued $500, 15\%$ Debentures of Rs $100$ each at a discount of $10\%$ redeemable at a premium of $5\%$ after $4$ years. The amount of annual interest on Debentures is -

A
Rs $6,750$

B
Rs $7,500$

C
Rs $7,875$

D
Rs $7,125$

Solution

Amount of annual interest= No. of debentures x face value of each debentures x Rate of interest p.a.
= 500 x 100 x 10/ 100
= Rs. 7500
Therefore, B is the correct option.
Question 7
1 / -0

X Ltd issues $500, 15\%$ Debentures of Rs $100$ each on $1st$ May at a discount of $10\%$ redeemable at a premium of $5\%$ after $4$ years. Interest was payable half yearly on $30th$ June and $31st$ December. The amount of interest accrued but not due to be shown in the balance sheet as at $31st$ March is-

A
Rs $1,250$

B
Rs $1,875$

C
Rs $3,750$

D
Rs $5,000$
Question 8
1 / -0

'Premium on Redemption of Debentures Account' is a:

A
Personal Account

B
Real Account

C
Nominal Account

D
None of the above

Solution

Premium on redemption of debentures is shown under liabilities side of the Balance Sheet, so, it is a personal account. This premium is payable by the company on redemption of the debentures to the debenture-holders.
Question 9
1 / -0

Withdrawal from DRR is permissible only after ____% of the debenture liability has been redeemed.

A
30

B
40

C
10

D
25
Question 10
1 / -0

A price exclusive of the interest for the period for which the seller held the debentures is called _________________.

A
Ex-interest price

B
Cum-interest price

C
Plus-interest price

D
Additional-interest price

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Yearend	Nominal value of Total Debentures to redeemed
2	10%
3	20%
4	30%
5	40%

Year beginning	Nominal value of Total Debentures to redeemed
2	10%
3	20%
4	30%
5	40%

Issue and Redemption of Debentures Test 1

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Issue and Redemption of Debentures Test 1

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Question 1

Personal Account

Real Account

Nominal Account

None of these

Question 2

Secured and unsecured Debentures

Redeemable Debentures and Irredeemable Debentures

Convertible Debentures and Non-convertible Debentures

Registered Debentures and Bearer Debentures

Question 3

Rs2,400,Rs1,800,Rs1,200,Rs6002,400, Rs1,800, Rs 1,200, Rs 6002,400,Rs1,800,Rs1,200,Rs600

Rs1,500,Rs1,500,Rs1,350,Rs1,050,Rs600Rs 1,500, Rs 1,500, Rs 1,350, Rs 1,050, Rs 600Rs1,500,Rs1,500,Rs1,350,Rs1,050,Rs600

Rs1,200Rs1,200Rs1,200 each year

None of these

Question 4

Rs1,5001,5001,500 each year

Rs1,2001,2001,200 each year

Rs2,000,Rs1,800,Rs1,400,Rs8002,000, Rs 1,800, Rs 1,400, Rs 8002,000,Rs1,800,Rs1,400,Rs800

None of these

Question 5

Rs10,00010,00010,000

Rs30,00030,00030,000

Rs20,00020,00020,000

Rs40,00040,00040,000

Question 6

Rs6,7506,7506,750

Rs7,5007,5007,500

Rs7,8757,8757,875

Rs7,1257,1257,125

Solution

Question 7

Rs1,2501,2501,250

Rs1,8751,8751,875

Rs3,7503,7503,750

Rs5,0005,0005,000

Question 8

Personal Account

Real Account

Nominal Account

None of the above

Solution

Question 9

30

40

10

25

Question 10

Ex-interest price

Cum-interest price

Plus-interest price

Additional-interest price

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Rs $2,400, Rs1,800, Rs 1,200, Rs 600$

$Rs 1,500, Rs 1,500, Rs 1,350, Rs 1,050, Rs 600$

$Rs1,200$ each year

Rs $1,500$ each year

Rs $1,200$ each year

Rs $2,000, Rs 1,800, Rs 1,400, Rs 800$

Rs $10,000$

Rs $30,000$

Rs $20,000$

Rs $40,000$

Rs $6,750$

Rs $7,500$

Rs $7,875$

Rs $7,125$

Rs $1,250$

Rs $1,875$

Rs $3,750$

Rs $5,000$