Bihar Board Class 12 (Commerce) Issue and Redemption of Debentures — practice questions
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Practice Bihar Board Class 12 (Commerce) Issue and Redemption of Debentures in the app →A debenture is a written instrument that acknowledges a ___ taken by a company:Holders of debentures are the ___ of the company:Interest paid on debentures is a:Debentures secured by a charge on the assets of the company are called:Debentures that can be converted into equity shares after a specified period are:Debentures that are repaid by the company after a fixed period are:When a debenture of face value ₹100 is issued for ₹100, it is issued:When a debenture of face value ₹100 is issued for ₹110, it is issued:When a debenture of face value ₹100 is issued for ₹95, it is issued:The fixed rate of interest carried by a debenture is known as its:Compared with an equity shareholder, a debenture holder has:On the winding up of a company, debenture holders are generally paid:Repayment of the amount of debentures by the company is referred to as ___ of debentures:The word debenture comes from a Latin word meaningA debenture is a written acknowledgement ofDebentures form part of the company'sPayment of dividend on shares is treated asDebentureholders normally do not enjoyDebentures can be converted into shares ifSecured debentures have a charge onA fixed charge for debentures is created onPerpetual debentures are also calledRedeemable debentures are payableZero coupon debentures are generally issued at aBearer debentures are transferred byInterest on bearer debentures is paid to the person whoThe procedure for issue of debentures is the same as that forDebentures are issued at par when the issue priceReceipt of application money on debentures is credited toOn allotment, application money is transferred from Debenture Application A/c to10,000 debentures of Rs. 100 are issued at 5% discount. Total discount allowed is2,000 debentures of Rs. 100 are issued at Rs. 10 premium. Securities premium collected?2,000 debentures of Rs. 100 at Rs. 10 premium are fully paid. Total cash received?A debenture is a collateral security when it is issuedA lender can use collateral debentures whenPremium payable on redemption of debentures is debited toThe liability for premium on redemption is credited to1,000 debentures of Rs. 100 issued at 5% discount, redeemable at 10% premium. Loss on issue?Debentures of Rs. 5,00,000 carry 8% interest. Interest for one year isThe tax deducted at source from debenture interest is credited toWhen interest on debentures falls due, which account is debited?Which is a method of redeeming debentures?In redemption by instalments, the debentures to be paid are identified byA company buying its own debentures for cancellation is redeeming byRedemption by conversion is applicable only toA company may redeem debentures before maturity if4,000 debentures of Rs. 100 mature next year. Minimum investment due by April 30?Debentures of Rs. 3,00,000 mature in January 2018. The investment needed by April 30, 2017 isAmounts invested for redemption can be used only forWhich investment qualifies for debenture redemption?Traditionally, bonds were issued by theSection 2(30) of the Companies Act, 2013 definesUnlike shares, debentures are generally