Question :
The debentures that are not repayable during the lifetime of the company and hence are repaid only when the company is liquidated are called as
Option 1: Redeemable debentures
Option 2: Irredeemable debentures
Option 3: Secured debentures
Option 4: Unsecured debentures
Correct Answer: Redeemable debentures
Solution : Answer = Redeemable debentures
Debentures that are not repayable during the lifetime of the company and are only repaid upon liquidation are called redeemable debentures. Unlike irredeemable debentures, which have no fixed repayment date, redeemable debentures have a predetermined maturity date, at which point the company repays the principal amount to the debenture holders. Hence, the correct option is 1.
----------------Debentures are those debentures that are repayable by the company at the end of a specified period or by installments during the existence of the company.
The debentures which are secured by either a fixed charge or a floating charge on the assets of the company. A charge on the assets of the company is registered with the Registrar of Companies are called as
Option 1: Secured debentures
Option 2: Unsecured debentures
Option 3: Irredeemable debentures
Option 4: Convertible debentures
Question : -------------------------------are the debentures that are convertible into shares.
Option 1: Convertible debentures
Option 2: Non convertible debentures
Option 3: Redeemable debentures
If 10,000, 9% Debentures of Rs. 100 each are issued on 1st April, 2019 redeemable on 31st January, 2021. These debentures will be shown as ------------- under the head ---------- in the Balance Sheet as at 31st March, 2020.
Option 1:
Long term borrowing and non-current liabilities
Option 2: Short term borrowing and current liabilities
Option 3: Trade payable
Option 4: None of the above
The debentures do not carry a specific rate of interest. In order to compensate the investors such debentures are issued at a substantial discount. The difference between the face value and the issue price is the total amount of interest related to the duration of debentures.
Option 1: Zero Coupon Rate Debentures (Bonds)
Option 2: Bearer Debentures
Option 3: Secured Debentures
Option 4: Unsecured Debentures
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