List of top Accountancy Questions on Debentures asked in CUET (UG)

G.S. Rai company ltd. purchased assets of the book value of Rs. 98,000 from another firm. It was agreed that purchase consideration be paid by issuing 11% debentures of Rs. 100 each. Assume debentures have been issued at discount of 20%. Identify the number of debentures issued by the company to the vendor:
When Debentures are issued at par and are redeemable at a premium, the Loss on such an issue is debited to:
If a company issues Rs. 1,00,000, 9% debentures of Rs. 100 each at a discount of 5% but redeemable at a premium of 5%, then what amount will be debited to Loss on Issue of Debentures Account?
Match List I with List II
Secured debenture — These are backed by a charge on the assets of the company. Matches with (III)
Choose the correct answer from the options given below:
Debenture Application & Allotment A/c ........ Dr. 95,000
Loss on Issue of Debentures A/c ................. Dr. 10,000
\hspace{0.5cm} To 9% Debenture A/c ...................................... 1,00,000
\hspace{0.5cm} To Premium on Redemption of Debentures A/c .... 5,000
On the basis of the above entry, determine the rate of discount at which Rs. 1,00,000, 9% debentures of Rs. 100 each were issued if they were to be redeemed at a premium of 5%.

The following journal entry appears in the books of X Co. Ltd. 

\[\text{Bank A/c Dr. 4,75,000} \\ \text{Loss on Issue of Debentures A/c Dr. 75,000} \\ \text{To 12\% Debentures A/c 5,00,000} \\ \text{To Premium on Redemption of Debenture A/c 50,000} \]

In this case, the debentures have been issued at a discount of 5%. What is the rate of premium on redemption of debentures?

Debentures can be redeemed in following ways except :-
Savage Ltd. Purchased for cancellation its own \(12,00,000\) , \(9\%\) debentures of \(₹ 100\) each at \(₹ 85 \) each. The profit on cancellation of own debentures will be:
Z Ltd. invited application for issue of \(10,000, 9\%\) Debentures of \(100\) each. Application were received for \(14,000\) Debentures. Company alloted debentures to all the applicants on pro-rata basis. Calculate the number of\( 9\%\) Debentures that would be issued to Mr Ravi who had applied for \(700\) debentures. 
Cash flow from Financing Activities includes:
(A) Issue of Equity shares to promoters 
(B) Redemption of Preference shares at premium 
(C) Interest on debenture paid 
(D) Raising funds by issuing 9% Debentures 
(E) Payment for purchase of Equity shares 
Choose the correct answer from the options given below: 
XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs 20,00,000 which is raised by issuing 10% Debenture of Rs 12,00,000 at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs 8,00,000 at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs 5,00,000 from PNB against 5% debenture of Rs 8,00,000 of Rs 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years. While issuing 10% debenture of Rs 12,00,000 at 10% discount. What amount should be transferred to “Discount on issue of debenture A/c” if all amount is received in one instalment ?
Company issues 10,000, 12% debentures of ₹ 100 each at par, redeemable at premium of 5% after 5 years. At the time of allotment; journal Entry will be :
Match LIST I with LIST II

LIST I
 

LIST II 
 
AProceeds from Long term borrowingsIMarketable Securities
BPurchase of Raw MaterialsIIInvesting Activities 
CPurchase of New EquipmentsIIIOperating Activities
DPurchase of New EquipmentsIVFinancing Activities
Choose the correct answer from the options given below
Debentures issued for consideration other than cash includes, debentures :
(A) Issued to bank as additional security
(B) Issued to vendor
(C) Issued to Public
(D) Issued to creditor
(E) Issued for cash
Choose the correct answer from the options given below :
From the following Particulars, calculate cash flow from investing activities :-
A plot of land been purchased for investment purpose and was let out for commercial use and rent received ₹ 30,000.
Interest paid on debentures ₹ 60,000
Purchase of Plant ₹ 4,40,000
Goodwill written off ₹ 20,000
Sale of Land ₹ 5,00,000
Which of the following is NOT a way to redeem the debentures?
Calculate Debt equity Ratio :
\(13\%\) Debentures \( ₹6,00,000\) 
Shareholders fund Z \(₹8,00,000\) 
Net Profit before tax \(₹3,51,000 \)
Current Liabilities \(₹1,60,000 \)
AB and Co, purchased assets worth Rs 28,80,000 from vendor . It issued debentures of Rs 100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendor is :
Match List I with List I
List IList II
A.Revaluation ReserveI.Share Capital
B.Issued CapitalII.Other Non current Assets
C.Discount on issue of debenturesIII.Inventories
D.Loose toolIV.Reserve and Surplus
Choose the correct answer from the options given below :
XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs 20,00,000 which is raised by issuing 10% Debenture of Rs 12,00,000 at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs 8,00,000 at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs 5,00,000 from PNB against 5% debenture of Rs 8,00,000 of Rs 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years. XYZ Ltd. issues 10% debentures of Rs 12,00,000 of Rs 100 each at a discount of 10% which will be repayable after 6 years. What type of debenture it is ?
XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs 20,00,000 which is raised by issuing 10% Debenture of Rs 12,00,000 at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs 8,00,000 at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs 5,00,000 from PNB against 5% debenture of Rs 8,00,000 of Rs 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years. Company raised a loan of Rs 5,00,000 from PNB against 5% debenture of Rs 8,00,000 of Rs 100 each as a collateral security. The "Debenture suspense A/c" will be debited with :
Data Ltd. purchased assets of the book value ₹ 4,00,000 and took over the liability of ₹ 50,000 from Sona Ltd. It was agreed that purchase consideration will be settled by cheque of ₹ 1,00,000 and by issue of ₹ 2,00,000. 10% debentures at premium of 25%. The Amount of goodwill/capital reserve will be
Debenture Redemption Reserve is created by:-
A. Service Sector Company
B. Manufacturing Company
C. Banking Company
D. Automobile Company
E. NFBC's registered with RBI
Choose the correct answer from the options given below :
Royan Ltd. issued 1,00,000 9% debentures of ₹100 each to public. Issue was subscribed. The amount will be shown as :
XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However to expand its operation in northern part of India, it needs additional capital Rs 20,00,000 which is raised by issuing 10% Debenture of Rs 12,00,000 at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of Rs 8,00,000 at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of Rs 5,00,000 from PNB against 5% debenture of Rs 8,00,000 of Rs 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years. XYZ Ltd. issued another category of debenture which are perpetual in nature. What type of debentures they are called :