Commerce (English Medium) कक्षा १२ - CBSE Question Bank Solutions for Accountancy

Pass the necessary journal entries for the issue of debentures in the following cases:

Rs 30,000, 12% debentures of Rs 100 each issued at a discount of 5% redeemable at par.

Pass the necessary journal entries for the issue of debentures in the following cases:

Rs 60,000, 12% debentures of Rs 100 each issued at a discount of 5% redeemable at Rs 105.

 A company with share capital must issue ...................... shares.

Short Answer Question

What is meant by ‘Premium on Redemption of Debentures’?

What is meant by redemption of debentures?

Short Answer Question

What is meant by redemption of debentures by conversion?

Short Answer Question

How would you deal with ‘Premium on Redemption of Debentures’?

What is meant by redemption of debentures out of Capital?

Short Answer Question

What is meant by redemption of debentures by ‘Purchase in the Open Market’?

Short Answer Question

Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet?

Long Answer Question

Differentiate between redemption of debentures out of capital and out of profits.

Long Answer Question

Explain the guidelines of SEBI for creating Debenture Redemption Reserve.

Long Answer Question

Describe the steps for creating Sinking Fund for redemption of debentures.

Long Answer Question

Can a company purchase its own debentures in the open market? Explain

Long Answer Question

What is meant by conversion of debentures? Describe the method of such a conversion.

X.Ltd. purchased a Machinery from Y for an agreed purchase consideration of Rs 4,40,000 to be satisfied by the issue of 12% debentures of Rs 100 each at a premium of Rs 10 per debenture. Journalise the transactions.

A company issued debentures of the face value of Rs 5,00,000 at a discount of 6% on April 01, 2012. These debentures are redeemable by annual drawings of Rs,1,00,000 made on March 31 each year. The directors decided to write off discount based on the debentures outstanding each year.

Calculate the amount of discount to be written-off each year. Give journal entries also.

A company issued 10% Debentures of the face value of Rs,1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of Rs 40,000 commencing from the end of third year.

How will you deal with discount on debentures?

Show the discount on debentures account in the company ledger for the period of duration of debentures. Assume accounts are closed on March 31 every year.

What journal entries will be made in the following cases when company redeems debentures at the expiry of period by serving the notice: (a) when debentures were issued at par with a condition to redeem them at premium; (b) when debentures were issued at premium with a condition to redeem that at par; and (c) when debentures were issued at discount with a condition to redeem them at premium?

On 1^st April 2015, Mayfair Ltd. issued 4,000 9% debentures of ₹ 100 each at a discount of 5% redeemable at a premium of 8%. The debentures were redeemable on 31^st March 2019. The company created the necessary minimum amount of debenture redemption reserve and purchased the required amount of debenture redemption investments as per the provisions of Companies Act, 2013.
Pass the necessary journal entries for the redemption of debentures.