Question : If a debenture of Rs.100 is issued at Rs.105 and is redeemable at Rs.100, securities premium account will be --------
Option 1: Debited by Rs 5
Option 2: Credited by Rs 105
Option 3: Credited by Rs 5
Option 4: Debited by Rs 105
Correct Answer: Credited by Rs 5
Solution : Answer = Credited by Rs 5
When a debenture is issued at a premium, the premium amount is credited to the Securities Premium Account. In this case, since the debenture is issued at Rs. 105 and is redeemable at Rs. 100, the premium received is Rs. 5, which would be credited to the Securities Premium Account. Hence, the correct option is 3.
Question : If a debenture of Rs.100 is issued at Rs.106 and is redeemable at Rs.110, at the time of issue of debentures
A securities premium account will be:
Option 1: Debited by Rs 6
Option 2: Debited by Rs 10
Option 3: Credited by Rs 10
Option 4: Credited by Rs 6
Question : If a debenture of Rs.100 is issued at Rs.98 and is redeemable at Rs.105,
Debentures account will be credited by ---------
Option 1: Rs 98
Option 2: Rs 105
Option 3: Rs 100
Option 4: Rs 110
Question : If a debenture of Rs.100 is issued at Rs.98 and is redeemable at Rs.105.
The Bank account will be debited by ---------
Option 1: Rs 100
Option 2: Rs 110
Option 3: Rs 98
Option 4: Rs 105
Question : Home Products Ltd. issued on 1st April, 2019,10,000,9% Debentures of Rs. 100 each at a premium of 10% redeemable at a premium of 5% after 5 years. Issue price was payable along with application. Which of the following statements is correct?
Option 1: Loss on issue of debenture account will be debited by Rs. 50,000
Option 2: Premium on Redemption of Debentures account credited by Rs. 50,000
Option 3: Premium of Redemption of Debentures account will be credited by Rs. 1,00,000
Option 4: Securities premium account will be credited by Rs. 1,00,000
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