Question :
Dilate Ltd. issued 10,000, 6% Debentures of Rs. 100 each at a discount of Rs. 10. It will credit 6% of Debentures Account by
Option 1:
Rs. 11,00,000
Option 2:
Rs. 10,00,000
Option 3: Rs. 9,00,000
Option 4: Rs. 8,00,000
Correct Answer:
Solution : Answer = Rs. 10,00,000.
The credit to the 6% Debentures Account would be for the total nominal value of the debentures issued, which is calculated as the number of debentures issued multiplied by their face value. In this case, it would be 10,000 debentures × Rs. 100 each, totalling Rs. 10,00,000.
6% Debentures = Rs 10,00,000
(10,000 debentures @ Rs 100 each) Hence, the correct option is 2.
R Ltd. issued 10,000, 12% Debentures of Rs. 100 each at a discount of 5%. Discount on issue of debenture account will be ----------. Debenture account credited by --------
Option 1: Debited by Rs 50,000, Debentures credited by 10,00,000
Option 2: Credited by Rs 50,000 debentures account credited by 10,00,000
Option 3: Debited by Rs 50,000 Debentures account credited by Rs 9,50,000
Option 4: None of the above
Intel Ltd. issued 10,000, 7% Debentures of Rs. 100 each at a discount of 10%. It has Securities Premium Reserve of Rs.1,50,000.Discount on Issue of Debentures, i.e., Rs. 1,00,000 will be written off by passing the following entry
Option 1: Securities premium account debited by Rs 1,00,000 and credited discount on issue of debentures account
Option 2: Debited profit and loss account and credited discount on issue of debenture account by Rs 1,00,000
Option 3: Debited profit and loss adjustment account and credited discount on issue of debenture account
Option 4: None of theses
Bose Ltd. purchased assets of Rs. 9,90,000 from Bhagat & Co. Payment was made by issuing 11% Debentures of Rs. 100 each. Calculate the number of debentures, if debentures were issued at 10% premium
Option 1: 9,900 debentures
Option 2: 9,000 debentures
Option 3: 11,000 debentures
Option 4: 10,000 debentures
Question : Bose Ltd. purchased assets of Rs. 9,90,000 from Bhagat & Co. Payment was made by issuing 11% Debentures of Rs. 100 each. If debentures issued at 10% discount, number of debentures issued is ________.
Citizen Ltd. issued 10,000, 6% Debentures of Rs. 100 each at a discount of 10% redeemable at 10% premium. It has Securities Premium Reserve of Rs. 1,75,000. Loss on Issue of Debentures Rs. 2,00,000 will be written off by passing the following entry
Option 1: Debited securities premium with Rs 1,75,000 and credited loss on issue of debenture account Rs 1,75,000
Option 2: Debited securities premium reserve account with Rs 1,75,000 and debited surplus in profit and loss account Rs 25,000 and credited loss on issue of debenture account Rs 2,00,000
Option 3: Debited surplus in statement of profit and loss account Rs 2,00,000 and credited loss on issue of debentures account
Option 4: None of these
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