Issue of Debentures
Issue of Debentures: Overview
This topic covers concepts such as, Issue of Debentures etc.
Important Questions on Issue of Debentures
What is the term for debentures that can be redeemed after a fixed period?
Which of the following is the correct journal entry for the issue of debentures at a discount?
What is the term for debentures that are not backed by any collateral?
Which type of debentures are converted into equity shares after a certain period?
What is the term used for debentures issued at a price lower than their face value?
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.
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:
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:
