Related InterviewSolutions

• Which of the following is not part of cash Equivalents?A. Cash at BankB. Current InvestmentsC. Marketable SecuritiesD. All of these.
• William Pens Ltd . Issued 10,000,`7%` Debentures of Rs.100 each at a discount of Rs.4. it has a balance in Securities Premium Reserve of Rs.25, 000. It Will write off Discount on Issue of DebenturesA. Rs.40,000 from Securities Premium ReserveB. Rs.40,000 from Statement of Profit and lossC. Rs. 25,000 from Securities Premium Reserve and Rs. 15,000 from Statement of Profit and Loss (Finance Cost)D. Rs.15,000 from Securities Premium Reserve and Rs.25,000 from Statement of Profit and Loss (Finance Cost)
• The provisions of the Companies Act , 2013 in respect of redemption of debentures are to protect the interest ofA. Debentureholders.B. Creditors.C. Shareholders.D. Bankers.
• Fast Internet Ltd. Issued 10,000 , `7%` Debentures of Rs.100 each at a discount of Rs.6 on 1st Ocyober, 2018. These debentures are redeemable at a premium of Rs.4 .Interest for the year ended 31st March , 2019 will beA. Rs.65,800.B. Rs.32,900.C. Rs.70,000.D. Rs.35,000.
• Apple Computers Ltd. Issued 10,000, `7%` Debentures of Rs.100 each at a discount of Rs.6 on 1st October, 2018. Interest for the year ended 31st March , 2019 will beA. Rs.65,800.B. Rs.32,900.C. Rs.70,000.D. Rs.35,000.
• In case debentures of Rs.10,000 are issued at par but redeemable at a premium of `10%` the premium payable is debited toA. Debentures Suspense Account.B. Premium on Redemption of Debentures Account.C. Loss on Issue of Debentres Account.D. Both (a) and (c ).
• Luxor pens Ltd. Issued 10,000, `7%` Debentures of Rs.100 each at a discount of Rs.4 redeemable at a premium of Rs. 6 .It will write off Loss on Issue of DebenturesA. from Securities Premium Reserve.B. from Statement of profit and loss.C. Any of the above.D. None of these.
• H & S Ltd. Has outstanding 10,000`8%` Debentures of Rs.100 each that are redeemable at premium of Rs.10 each Out of these, 5,000 debentures are to be redeemed on 31st December , 2018. Debenture Redemption Reserve should beA. Rs.1,37,500.B. Rs.1,25,000.C. Rs.2,50,000.D. Rs.2,75,000.
• Top Ramen Ltd. Decides to redeem 1,000, `10%` Debentures of Rs.100 each redeemable at `10%` premium. The company will have to invest in specified securities at leastA. Rs.15,000.B. Rs.16,500.C. Rs.25,000D. Rs.27,500.
• Cross Roads Ltd. Has to redeem 50,000 , `8%` Debentures of Rs.100 each on 30 th june , 2019, It should have a balance of Rs.12,50,000 in Debenture Redemption Reserve , It decides to set aside amount to Debenture Redemption Reserve on 31 st March , 2019 on which date it has following reserve: `{:(, "Rs."),("Capital Reserve","6,00,000"),("Debenture Redemption Reserve","2,50,000"),("General Reserve","1,00,000"),("Surplus, i.e, Balance in Statement of Profit and Loss","3,00,000"):}` How much further amount it needs to set aside to Debenture Redemption Reserve and how much it can set aside out of the above reserves and surplus?A. Rs.12,50, 000 and Rs.6,50,000B. Rs. 12,50,000 and Rs.4,00,000.C. Rs.12,50,000 and Rs.5,50,000.D. Rs.12,50,000 and Rs.12,50,000.