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Question
Premium received on issue of debentures may be utilised for:
Options
For writing off discount allowed on the issue of shares
For writing off premium allowed on redemption of debentures
For writing off preliminary expenses
All of the above
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Solution
All of the above
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RELATED QUESTIONS
What is meant by ‘Issue of debenture at discount and redeemable at premium’?
Pass necessary Journal entries for the issue of debentures in the following cases:
- ₹ 40,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at par.
- ₹ 70,000; 12% Debentures of ₹ 100 each issued at a premium of 5% redeemable at ₹ 110.
On 1st June, 2017, R Energy Ltd. issued 10,000, 7% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 10% at the end of five years. All the debentures were subscribed and allotment was made.
Prepare the Balance Sheet (extract) as at 31st March, 2018.
Fill in the blank.
For recording the issue of debentures as collateral security by a journal entry _______ account is debited.
Debentures which are transferable by mere delivery are ______.
Which of the following. column indicated in·the statement given below is to be credited?
"Writing off the loss on issue of debentures"
Debenture premium cannot be used to ______.
Debenture holders are the ______.
Assertion (A): Sarita Pvt. Ltd. issued 15% 10,000 debentures at par @ ₹ 100 per debenture. The company suffered a loss but still the directors of the company paid interest on debentures.
Reason (R): Interest on debenture is a charge against profits and therefore, its payment is not subject to the earning of profit.
Which of the following is not a source of cash?
