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. The Bank account will be debited by
Option 1: Rs 100
Option 2: Rs 106
Option 3: Rs 110
Option 4: Rs 94
Correct Answer: Rs 106
Solution : Answer = Rs 106
When a debenture is issued at a premium, the bank account is debited by the total amount received from the issue. In this case, since the debenture is issued at Rs. 106, the bank account will be debited by Rs. 106 representing the premium amount received in addition to the face value. Hence, the correct option is 2.
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.
Debentures account will be credited by -----
Option 1: Rs 106
Option 2: Rs 110
Option 3: Rs 100
Loss on the issue of debentures account will be -------
Option 1: Debited by Rs 16
Option 2: Debited by Rs 10
Option 3: Credited by Rs 10
Option 4: Debited by Rs 6
Question : If a debenture of Rs.100 is issued at Rs.95 and is redeemable at Rs.100, then at the time of issue bank account will be debited by
Option 2: RS 90
Option 3: Rs 95
Option 4: Rs 110
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 4: Credited by Rs 6
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 3: Rs 98
Option 4: Rs 105
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