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प्रश्न
Select the correct statement from the following options.
पर्याय
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
BG. Ltd. issued 2,000, 12% debentures of Rs.100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the half-yearly ending 31st March, 2013 and transfer of interest on debentures of the year to the Statement of Profit & Loss.
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.
Raj Motors Ltd. converted its 400, 12% debentures of Rs 100 each issued at a discount of 6% into equity shares of Rs 10 each issued at a premium of 25%. Discount on issue of 12% debentures had not yet been written off.
Showing your working notes clearly, pass necessary journal entries for the above transactions in the books of Raj Motors Ltd.
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.
Pass necessary journal entries in the following cases:
Kim India Ltd. converted 1,000, 9% debentures of Rs 100 each issued at a discount of 10% into equity shares of Rs 100 each issued at a premium of 25%.
Give the average period in months for charging interest on drawings for the same amount withdraws at the beginning of each quarter.
Select most appropriate alternative from those given below :
The interest on debentures is transferred to __________.
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.
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.
M. Ltd. took over assets of Rs. 9,00,00,000 and liabilities of Rs. 70,00,000 of S. Ltd. and issued 8% Debentures of Rs. 100 each. Record necessary entries in the books of M. Ltd.
