Discount on issue of Debentures is in the nature of:
  • Revenue Loss
  • Capital Loss
  • Deferred Revenue Expenditure
  • None of there
On liquidation of a company, principal amount of debentures is returned:
  • First of all
  • Last of all
  • Before Equity Capital
  • None of those
Interest payable on debentures is :
  • An appropriation of profits of the company
  • A charge against profits of the company
  • Transfer to Sinking Fund
  • None of the above
Debentures represent:
  • Director’s Share in a Company
  • Investments by Equity Shareholders
  • Long-term Debt of the Business
  • None of these
Debentures carries interest at: .
  • 12% p.a.
  • Fixed Rate
  • 20% p.a.
  • 6% p.a.
Generally debentures are :
  • Secured
  • Unsecured
  • Partly Secured
  • None of these
Premium on issue of debentures is a for Company :
  • Revenue Receipt
  • Profit
  • Capital Receipt
  • All of these
For a company discount on issue of debentures is :
  • Capital Loss
  • Revenue Loss
  • General Loss
  • None of these
‘Premium on issue of debentures’ is shown in the Balance Sheet on:
  • Assets side
  • Liabilities side
  • None of these
  • All of these
The balance of discount on debentures is shown in the Balance Sheet on:
  • Assets side
  • Liabilities side
  • None of these
  • All of these
Rate of interest on debentures is :
  • 12% p.a.
  • 20% p.a.
  • Fixed Rate
  • 15% p.a.
Discount on issue of Debentures should be written off:
  • Out of Securities Premium Account
  • Out of Capital Profits
  • Out of Statements of Profit and Loss
  • In the above order over the period of debentures
F Ltd. purchased machinery for a book value of ₹ 4,00,The consideration was paid by issue of 10% Debentures of ₹ 100 each at a discount of 20%. The Debenture Account will be credited by :
  • ₹ 4,00,000
  • ₹ 5,00,000
  • ₹ 3,20,000
  • ₹ 4,80,000
Debenture holder gets:
  • Di vidend
  • Profit
  • Interest
  • Interest at fixed rate
Loss on issue of debentures is generally written off in :
  • 5 years
  • 10 years
  • 15 years
  • Over the period of redemption
When debentures are issued as collateral security, which entry has to be passed ?
  • Debenture Suspense A/c Dr. To Debentures
  • No entry has to be made
  • (a) or (b)
  • None of these
Debenture holder receives:
  • Dividend
  • Interest
  • Both Dividend and Interest
  • Bonus
Debenture holders are called of the company.
  • Creditors
  • Debtors
  • Owners
  • Bankers
A company issued ₹ 1,00,000 12% debentures of ₹ 100 each. The amount of interest on debentures will be:
  • ₹ 12,000
  • ₹ 1,20,000
  • ₹ 12,00,000
  • None of these
Premium on redemption of debentures account is :
  • A real account
  • A nominal account
  • A personal account
  • None of these
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