When debentures are issued at premium and redeemed at premium, the journal entry will have the following combination:

(A) Discount on issue of debentures account is credited
(B) Loss on issue of debentures account is debited
(C) Security premium account is credited
(D) Premium on redemption of debentures account is credited

Choose the correct answer from the options given below:

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Important Questions on Issue and Redemption of Debentures

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Other Subjects>Accountancy>Issue and Redemption of Debentures>Issue of Debentures

AB&Co. purchased assets worth ₹ 28,80,000 from vendor. It issued debentures of ₹ 100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendor is:

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Other Subjects>Accountancy>Issue and Redemption of Debentures>Issue of Debentures

Romi Ltd. purchased building worth ₹1,50,000, machinery worth ₹1,40,000 and furniture worth ₹10,000 from XYZ Co. and took over its liabilities of ₹20,000 for a purchase consideration of ₹3,15,000. They paid the purchase consideration by issuing 12% debentures of ₹100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.

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Other Subjects>Accountancy>Issue and Redemption of Debentures>Issue of Debentures

Which of the following is the correct journal entry for the issue of debentures at a discount?

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Other Subjects>Accountancy>Issue and Redemption of Debentures>Issue of Debentures

What is the term used for debentures issued at a price lower than their face value?

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Other Subjects>Accountancy>Issue and Redemption of Debentures>Issue of Debentures

Which type of debentures are converted into equity shares after a certain period?

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Other Subjects>Accountancy>Issue and Redemption of Debentures>Issue of Debentures

What is the term for debentures that are not backed by any collateral?