Question : Loss on issue of Debentures arises when

Option 1: Debentures are issued at par and redeemable at par 

Option 2: Debentures are issued at a premium redeemable at par 

Option 3: Debentures are issued at premium redeemable at premium

Option 4: All of the above

Question : If debentures of Rs. 20,000 are issued at par and are redeemable at a premium of 10%, the premium payable is debited to

Option 1: Premium on Redemption of Debentures Account

Option 2: Debentures Suspense Account

Option 3: Loss on Issue of Debentures Account

Option 4: None of the above

Question : On 1st April, 2018, RJ. Ltd. issued  Rs. 10,00,000, 9% Debentures of  Rs. 100 each at a discount of 10%. These debentures were redeemable at a premium of 5% after four years. Premium on Redemption of Debentures debited/credited with ______. 

Option 1: Credited with Rs. 20,000

Option 2: Debited with Rs. 50,000

Option 3: Credited with Rs. 50,000

Option 4: None of the above 

Question : On 1st April, 2018, RJ. Ltd. issued  Rs. 10,00,000, 9% Debentures of  Rs. 100 each at a discount of 10%. These debentures were redeemable at a premium of 5% after four years. Premium on Redemption of Debentures debited/credited with ______. 

Option 1: Credited with Rs. 20,000

Option 2: Debited with Rs. 50,000

Option 3: Credited with Rs. 50,000

Option 4: None of the above 

Question : Prakash Ltd. purchased assets worth Rs.2,20,000 and also took over the liabilities (creditors) of Rs.40,000 of Ajay Ltd. for a purchase consideration of Rs.1,92,000. Prakash Ltd. paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 20%.

Number of debentures issued

Option 1: 1,200 debentures 

Option 2: 1,600 debentures 

Option 3: 1,500 debentures 

Option 4: 1,000 debentures