20 + Interview Questions in ISSUE-OF-DEBENTURES IN GENERAL AWARENESS Page 1 InterviewSolution

1.	Which of the following is not a characteristic of Bearer Debentures ?A. They are treated as negotiable instruments.B. Their transfer requires a deed of transfer.C. They are transferable by mere delievery.D. The interest on it is paid to the holder irrespective of identify.
Answer» Correct Answer - B

Discussion

2.	When debentures of .Rs 1,00, 000 are issued as Collateral Security against a loan of .Rs 1,50,00 , the entry for issue of debentures will be:A. Credit Cebentures .Rs 1,50,000 and debit bank A/c.Rs 1,50,000B. Debit Debenture Suspense A/c .Rs 1,00,000 and Credit Bank A/c .Rs 1,00,000C. Debit debenture Suspense A/c .Rs 1,00,000 and Credit Debentures A/c .Rs 1,00,000D. Debit Cash A/c .Rs 1,50,000 and Credit Bank A/c .Rs 1,50,000
Answer» Correct Answer - C

Discussion

3.	Sunrise Ltd purchased a building for .Rs 5,00,000 payable as 15 % in cash and balance by allotment of 9% debentures of .Rs 100 each at a premiumof 25 % Number of debentures issued will be :A. `4,250`B. `4,000`C. `5,000`D. `3,400`
Answer» Correct Answer - D

Discussion

4.	Debentures issued as collateral security will be debited to :A. Bank AccountB. Debentures Suspense AccountC. Debentures AccountD. Bank Loan Account
Answer» Correct Answer - B

Discussion

5.	Interest payable on debentures is :A. an appropriation of profits of the companyB. a charge against profits of the companyC. transferred to sinking fund investment accountD. transferred to general reserve
Answer» Correct Answer - B

Discussion

6.	Debenture holders are :A. Owners of the CompanyB. Debtors of the CompanyC. Creditors of the CompanyD. Promoters of the Company
Answer» Correct Answer - C

Discussion

7.	A debenture holder in entitled to :A. Fixed dividendB. Share in profitsC. Voting rights in the companyD. Interest at the fixed rate
Answer» Correct Answer - D

Discussion

8.	Interest on debentures issued as a collateral security is paid on :A. Nominal value of debenturesB. No interest is paidC. Face value of debenturesD. Paid up value of debentures
Answer» Correct Answer - B

Discussion

9.	On issue of debentures as a collateral security, which account is credicted ?A. Debentures AccountB. Bank Loan AccountC. Debentures Holding AccountD. Debenture Suspense Account
Answer» Correct Answer - A

Discussion

10.	Debenture Application Account is in the nature ofA. RealAccountB. Personal AccountC. Nominal AccountD. None of the Above
Answer» Correct Answer - B

Discussion

11.	Loss on Issue of Debentures is written off :A. In the year of the issue of debenturesB. During the life of the debenturesC. Within 3 years of the issue of debenturesD. In the year of redemption of debentures
Answer» Correct Answer - A

Discussion

12.	Discount on issue of Debentures is in the nature ofA. Revenue lossB. Capital lossC. Deferred revenue ExpenditureD. None of above
Answer» Correct Answer - B

Discussion

13.	Debentures of a Company can be issued :A. For CashB. For Consideration other than CashC. As a Collateral SecurityD. Any of the above
Answer» Correct Answer - D

Discussion

14.	Premium on Redemption of Debentures Account is :A. Personal AccountB. Real AccountC. Nominal AccountD. All of the Above
Answer» Correct Answer - A

Discussion

15.	Premium received on issue of debentures may be utilised forA. For writing off discount allowed on issue of sharesB. For writing off premium allowed on redemption of debenturesC. For writing off preliminary expensesD. For All of the Above
Answer» Correct Answer - D

Discussion

16.	The Principal amount of debentures will be rapid by the company either at the end of a specified period or by instalments during the life time of the company. Such types of debenture are called :A. Redeemable DebenturesB. Irredeemable DebenturesC. Convertible DebenturesD. Bearer Debentures
Answer» Correct Answer - A

Discussion

17.	On liquidation of company, principal amount of debentures is returned :A. First of AllB. Last of AllC. Before Equity CapitalD. After Equity Capital
Answer» Correct Answer - C

Discussion

18.	X Ltd. Purchased a building for .Rs 60,00,000 payable as 20 % in Cash and balance by allotment of 8% debentures of .Rs 500 each at a premium of 20% Number of debentures issued will be :A. `9,600`B. `8,000`C. `12,000`D. `10,000`
Answer» Correct Answer - B

Discussion

19.	X Ltd. acquired assets of .Rs 20 lakhs and took over creditors of .Rs 20 thousand from Y Ltd. X.Ltd. Issued 8% debentures of .Rs 200 each at a discount of 10% as purchase consideration. Number of debentures issued will be :A. `11,000`B. `9,000`C. `10,000`D. `10,100`
Answer» Correct Answer - A

Discussion

20.	If Vendors are issued debentures of .Rs 80,000 in consideration of net assets of .Rs 1,00,000, the balance of .Rs 20,000 will be credited to :A. Statement of Profit & LossB. Goodwill AccountC. General Reserve AccountD. Capital Reserve Account
Answer» Correct Answer - D

Discussion

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Which of the following is not a characteristic of Bearer Debentures ?A. They are treated as negotiable instruments.B. Their transfer requires a deed of transfer.C. They are transferable by mere delievery.D. The interest on it is paid to the holder irrespective of identify.

Sunrise Ltd purchased a building for .Rs 5,00,000 payable as 15 % in cash and balance by allotment of 9% debentures of .Rs 100 each at a premiumof 25 % Number of debentures issued will be :A. `4,250`B. `4,000`C. `5,000`D. `3,400`

Debentures issued as collateral security will be debited to :A. Bank AccountB. Debentures Suspense AccountC. Debentures AccountD. Bank Loan Account

Interest payable on debentures is :A. an appropriation of profits of the companyB. a charge against profits of the companyC. transferred to sinking fund investment accountD. transferred to general reserve

Debenture holders are :A. Owners of the CompanyB. Debtors of the CompanyC. Creditors of the CompanyD. Promoters of the Company

A debenture holder in entitled to :A. Fixed dividendB. Share in profitsC. Voting rights in the companyD. Interest at the fixed rate

Interest on debentures issued as a collateral security is paid on :A. Nominal value of debenturesB. No interest is paidC. Face value of debenturesD. Paid up value of debentures

On issue of debentures as a collateral security, which account is credicted ?A. Debentures AccountB. Bank Loan AccountC. Debentures Holding AccountD. Debenture Suspense Account

Debenture Application Account is in the nature ofA. RealAccountB. Personal AccountC. Nominal AccountD. None of the Above

Loss on Issue of Debentures is written off :A. In the year of the issue of debenturesB. During the life of the debenturesC. Within 3 years of the issue of debenturesD. In the year of redemption of debentures

Discount on issue of Debentures is in the nature ofA. Revenue lossB. Capital lossC. Deferred revenue ExpenditureD. None of above

Debentures of a Company can be issued :A. For CashB. For Consideration other than CashC. As a Collateral SecurityD. Any of the above

Premium on Redemption of Debentures Account is :A. Personal AccountB. Real AccountC. Nominal AccountD. All of the Above

Premium received on issue of debentures may be utilised forA. For writing off discount allowed on issue of sharesB. For writing off premium allowed on redemption of debenturesC. For writing off preliminary expensesD. For All of the Above

The Principal amount of debentures will be rapid by the company either at the end of a specified period or by instalments during the life time of the company. Such types of debenture are called :A. Redeemable DebenturesB. Irredeemable DebenturesC. Convertible DebenturesD. Bearer Debentures

On liquidation of company, principal amount of debentures is returned :A. First of AllB. Last of AllC. Before Equity CapitalD. After Equity Capital

X Ltd. Purchased a building for .Rs 60,00,000 payable as 20 % in Cash and balance by allotment of 8% debentures of .Rs 500 each at a premium of 20% Number of debentures issued will be :A. `9,600`B. `8,000`C. `12,000`D. `10,000`

X Ltd. acquired assets of .Rs 20 lakhs and took over creditors of .Rs 20 thousand from Y Ltd. X.Ltd. Issued 8% debentures of .Rs 200 each at a discount of 10% as purchase consideration. Number of debentures issued will be :A. `11,000`B. `9,000`C. `10,000`D. `10,100`

If Vendors are issued debentures of .Rs 80,000 in consideration of net assets of .Rs 1,00,000, the balance of .Rs 20,000 will be credited to :A. Statement of Profit & LossB. Goodwill AccountC. General Reserve AccountD. Capital Reserve Account