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Question
A company with share capital must issue ...................... shares.
Options
(a) equity
(b) preference
(c) right
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Solution
(a) Equity
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RELATED QUESTIONS
Debenture certificate must be issued within ___________ months of allotment.
TRK Ltd. issued 767, 9% debentures of Rs.100 each on 1-1-2016. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at a discount of 3% and were redeemable at a premium of 7%.
(b) When debentures were issued at a premium of 4% and were redeemable at a premium of 9%.
KTR Ltd., issued 365, 9% Debentures of `1,000 each on 4-3-2016. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at par redeemable at a premium of 10%.
(b) When debentures were issued at 6% discount redeemable at 5% premium.
On 2.3.2016 L and B Ltd. issued 635, 9% debentures of Rs.500 each. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at 5% discount, redeemable at 10% premium.
(b) When debentures were issued at 12% premium, redeemable at 6% premium.
VKR Ltd. issued 975; 9% Debentures of Rs 500 each on 4-3-2016. Pass necessary journal entries for the issue of debentures under the following situations :
(a) When debentures were issued at a premium of 10% redeemable at a premium of 6%.
(b) When debentures were issued at a par redeemable at 9% premium.
Taneja Constructions Ltd. has an outstanding balance of Rs 5,00,000, 7% debentures of Rs 100 each redeemable at a premium of 10%. According to the terms of redemption, the company redeemed 30% of the above debentures by converting them into shares of Rs 50 each at a premium of 20%. Record the entries for the redemption of debentures in the books of Taneja Constructions Ltd.
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.
Match the correct pairs of words from group A and B :
| Group A | Group B |
| (a) Dividend | (1) Security about repayment |
| (b) Financial plan | (2) 1875 |
| (c) Secured debentures | (3) Return on investment of shareholders |
| (d) American depository receipt | (4) 1857 |
| (e) Establishment of Bombay Stock Exchange | (5) Management of business funds |
| (6) Repaid on maturity | |
| (7) Debenture certificate holder | |
| (8) Advance programming of financial management | |
| (9) A receipt is traded in a country other than the USA | |
| (10) A receipt is traded in the USA |
Write notes on Procedure for redemption of debentures.
Define debenture.
Explain the secretarial procedure regarding issue of debentures.
While issuing ______ type of Debentures, company doesn’t give any undertaking for the repayment of money borrowed by issuing such debentures.
Pioneer Fitness Ltd. took over the running business of Healthy World Ltd. having assets of ₹ 10,00,000 and liabilities of ₹ 1,70,000 by:
- Issuing 8,000 8% Debentures of ₹ 100 each at 5% premium redeemable after 6 years @ ₹ 110; and
- Cheque for ₹ 50,000.
Pass the Journal entries in the books of Pioneer Fitness Ltd.
