Issue and Redemption of Debentures — Class 12 Accountancy PYQs

(b) VX Ltd. issued 30,000, 8% debentures of ₹ 100 each at a discount of 10% redeemable at a certain rate of premium. On issue of these debentures, 'Loss on issue of debentures account' was debited with ₹ 4,50,000. The amount of premium on redemption of debentures was ______.
(A) ₹ 3,00,000
(B) ₹ 1,50,000
(C) ₹ 30,000
(D) ₹ 4,50,000

(a) Debentures in respect of which all details including names, addresses and particulars of holding of the debenture holders are entered in a register kept by the company are called :
(A) Bearer debentures
(B) Redeemable debentures
(C) Registered debentures
(D) Secured debentures

On 1st April 2023, Veebee Ltd. issued 20,000, 13% debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after 4 years. Total amount of interest on debentures for the year ending 31st March, 2024 will be :
(A) ₹ 2,00,000
(B) ₹ 2,60,000
(C) ₹ 1,00,000
(D) ₹ 3,00,000

(a) The following journal entry appears in the books of Latvion Ltd. :

Particulars	Dr. Amount (₹)	Cr. Amount (₹)
Bank A/c Dr.	4,75,000
Loss on issue of debentures A/c Dr.	75,000
To 12% Debentures A/c		5,00,000
To Premium on Redemption of Debentures A/c		50,000

The discount on issue of debentures is :
(A) 15%
(B) 5%
(C) 10%
(D) 95%

OR

(b) Zeba Limited issued 15,000, 9% debentures of ₹ 100 each at 10% discount on 1st April, 2023. It has a balance of ₹ 1,00,000 in Securities Premium Account. The 'Discount on issue of Debentures' of ₹ 1,50,000 will be written off :
(A) ₹ 1,00,000 out of Securities Premium Account and ₹ 50,000 out of Statement of Profit and Loss
(B) ₹ 50,000 out of Securities Premium Account and ₹ 1,00,000 out of Statement of Profit and Loss
(C) ₹ 1,50,000 out of Securities Premium Account
(D) ₹ 1,50,000 out of Statement of Profit and Loss

Pass necessary journal entries for issue of debentures for the following transactions :
(i) Kiero Ltd. issued 80,000, 9% debentures of ₹ 100 each at par, redeemable at a premium of 10%.
(ii) Naro Ltd. issued 50,000, 10% debentures of ₹ 100 each at a premium of 5%, redeemable at a premium of 10%.

Swar Sangam Limited issued 3,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows :
On Application - ₹ 200 per debenture
On Allotment - Balance (including premium)
The debentures were fully subscribed and all amounts were duly received.
Pass the necessary journal entries for issue of debentures in the books of Swar Sangam Limited.

Sargam Limited issued 2,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows :
On Application - ₹ 200 per debenture
On Allotment - Balance (including premium)
The debentures were fully subscribed and all amounts were duly received.
Pass the necessary journal entries for issue of debentures in the books of Sargam Limited.

Ridyum Limited issued 5,000, 9% debentures of ₹ 500 each at a premium of 10%. The amount was payable as follows :
On Application - ₹ 200 per debenture
On Allotment - Balance (including premium)
The debentures were fully subscribed and all amounts were duly received.
Pass the necessary journal entries for issue of debentures in the books of Ridyum Limited.

Assertion (A) : Irredeemable debentures are also known as perpetual debentures.
Reason (R) : The company does not give any undertaking for the repayment of money borrowed by issuing such debentures. They are repayable on the winding up of the company or on the expiry of a long period.
Choose the correct option from the following :
(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is incorrect, but Reason (R) is correct.
(D) Assertion (A) is correct, but Reason (R) is incorrect.