alleryStart learning →A debenture is a written instrument that acknowledges a ___ taken by a company:
- reserve
- debt (loan)
- gift
- share in ownership
Show answer and solution
Correct answer: B. debt (loan)
A debenture acknowledges a debt (loan) taken by the company.
Class 12 Commerce Issue and Redemption of Debentures — practice questions
Explore 13 free Issue and Redemption of Debentures questions in Class 12 Commerce Accountancy. Open each question or exercise to read its content, reference answers and available explanation.
Practise Issue and Redemption of Debentures with Quill →Issue and Redemption of Debentures questions and exercises with answers
Showing questions 1–13 of 13.
A debenture is a written instrument that acknowledges a ___ taken by a company:Read the answer and worked solution →Holders of debentures are the ___ of the company:Read the answer and worked solution →Interest paid on debentures is a:Read the answer and worked solution →Debentures secured by a charge on the assets of the company are called:Read the answer and worked solution →Debentures that can be converted into equity shares after a specified period are:Read the answer and worked solution →Debentures that are repaid by the company after a fixed period are:Read the answer and worked solution →When a debenture of face value ₹100 is issued for ₹100, it is issued:Read the answer and worked solution →When a debenture of face value ₹100 is issued for ₹110, it is issued:Read the answer and worked solution →When a debenture of face value ₹100 is issued for ₹95, it is issued:Read the answer and worked solution →The fixed rate of interest carried by a debenture is known as its:Read the answer and worked solution →Compared with an equity shareholder, a debenture holder has:Read the answer and worked solution →On the winding up of a company, debenture holders are generally paid:Read the answer and worked solution →Repayment of the amount of debentures by the company is referred to as ___ of debentures:Read the answer and worked solution →
Worked practice questions
Holders of debentures are the ___ of the company:
- promoters
- creditors
- owners
- directors
Show answer and solution
Correct answer: B. creditors
Debenture holders are creditors, not owners.
Interest paid on debentures is a:
- charge against profit (paid whether or not there is profit)
- share of profit paid only if profit exists
- bonus
- dividend
Show answer and solution
Correct answer: A. charge against profit (paid whether or not there is profit)
Interest on debentures is a charge against profit — payable regardless of profit.
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