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प्रश्न
Select the correct statement from the following options.
विकल्प
A debenture holder is entitled to receive a dividend on his debentures from the company even if the company has incurred losses.
A debenture holder is entitled to receive interest on his debentures from the company only if the company has made profits.
A debenture holder is entitled to receive interest on his debentures from the company only after a dividend has been paid by the company to its shareholders.
A debenture holder is entitled to receive interest on his debentures from the company even if the company has incurred losses.
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उत्तर
A debenture holder is entitled to receive interest on his debentures from the company even if the company has incurred losses.
Explanation:
Debenture holders are entitled to interest on their debentures. The interest will be calculated using the face value of the debentures and levied against profits. The interest is paid to debenture holders before any dividends are given to shareholders, and it is produced even in the event of a loss.
संबंधित प्रश्न
On 1st April, 2014, KK Ltd. invited applications for issuing 5,000 10% debentures of Rs 1,000 each at a discount of 6%. These debentures were repayable at the end of 3rd year at a premium of 10%. Applications for 6,000 debentures were received and the debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded.
The directors decided to transfer the minimum amount to Debenture Redemption Reserve on 31.3.2016. On 1.4.2016, the company invested the necessary amount in 9% bank fixed deposit as per the provisions of the Companies Act, 2013. Tax was deducted at source by bank on interest @10% p.a.
Pass the necessary journal entries for issue and redemption of debentures. Ignore entries relating to writing off loss on issue of debentures and interest paid on debentures.
On 1-4-2015 K.K. Ltd. issued 500, 9% Debentures of Rs 500 each at a discount of 4%, redeemable at a premium of 5% after three years.
Pass necessary Journal Entries for the issue of debentures and debenture interest for the year ended 31-3-2016 assuming that interest is payable on 30th September and 31st March and the rate of tax deducted at source is 10%. The company closes its books on 31st March every year.
On 1.4.2015, Neena Ltd. issued 800, 9% debentures of Rs 100 each at a discount of 5%, redeemable at a premium of 8% after five years. The company closes its books on 31st March every year. Interest on 9% debentures is payable on 30th September and 31st March. Rate of tax deducted at source is 10%.
Pass necessary journal entries for the issue of 9% debentures and payment of interest on 9% debentures for the year ended 31st March, 2016.
Vishesh Ltd. issued 10,000, 10% Debentures of Rs 100 each on 1st April, 2012. The issue was fully subscribed. According to the terms of issue, interest on debentures is payable half-yearly on 30th September and 31st March and tax deducted at source is 10%.
Pass the necessary journal entries related to the debentures interest for the half-yearly ending on 31st March, 2013 and transfer of interest on debentures for the year to Statement of Profit and Loss.
Select most appropriate alternative from those given below :
The interest on debentures is transferred to __________.
State to whether the following statement is True/False.
The rate of interest on debentures is attached to the debenture
G. Ltd., a listed company, issued 75,00,000, 6% Debentures of Rs 50 each at par, payable Rs 15 on application and Rs 35 on allotment, redeemable at par after 7 years from the date of issue of the debenture. Record necessary entries in the books of the Company.
Y. Ltd. issued 2,000, 6% Debentures of Rs 100 each payable as follows: Rs 25 on application; Rs 50 on allotment and Rs 25 on the First and Final call. Record necessary entries in the books of the company.
A. Ltd. issued 90,00,000, 9% Debenture of Rs 50 each at a discount of 8%, redeemable at par any time after 9 years. Record necessary entries in the books of A. Ltd. for the issue of debentures.
X. Ltd. invites applications for the issue of 10,000, 14% debentures of Rs. 100 each payable as to Rs. 20 on application, Rs. 60 on allotment and the balance on call. The company receives applications for 13,500 debentures, out of which applications for 8,000 debentures are allotted in full, applications for 5,000 debentures were alloted only 40% of received application, and the remaining applications were rejected. The surplus money on partially allotted applications is utilised towards allotment. All the sums due are duly received. Record necessary journal entries regarding the issue of debentures.
