Debentures Issued at Discount

Q. Discount on issue of debentures is a/an .

1. revenue
2. reserve
3. asset
4. liability

Q.

If the face value of debenture is Rs. 100 and the discount is 10%. It means company will get ___

1. Rs 90

2. None of these

3. Rs 100

4. Rs 110

Q.

B Ltd. issued debentures at 94% for Rs.4, 00, 000 on April 1, 2000 repayable by five equal drawings of Rs. 80, 000 each. The company prepares its final accounts on December 31 every year

Indicate the amount of discount to be written-off every accounting year assuming that the company decides to write off the debentures discount during the life of debentures. (Amount to be written-off ; 2000- Rs. 6, 000; 2001- Rs. 6, 800; 2002 - Rs.5, 200; 2003- Rs.3, 600; 2004- Rs. 2, 000, 2005- Rs. 400)

Q. If debentures are issued at Discount, then Discount on issue of debenture A/c is:

1. Credited
2. Debited

Q. When a debenture is issued at a price below its nominal value, it is said to be issued at ​​​​​​​.

1. par
2. premium
3. discount
4. interest

Q.

Discount on issue of debentures is a/an ________.

1. All of these

2. Asset

3. Capital loss

4. Revenue

Q.

When a debenture is issued at a price below its nominal value, it is said to be issued at ___

1. All of these

2. Discount

3. Premium

4. Par

Q. Objective type questions.
Answer in are sentence only.

What is meant by ‘Issue of debenture at discount and redeemable at premium’?

Q. If the face value of debenture is Rs. 100 and the discount is 10%. It means company will get .

1. Rs 100
2. Rs 110
3. Rs. 200
4. Rs 90

Q. Which of the following is not a cost linked with maintaining receivables?

1. Cost of funds
2. Discount costs
3. Collection costs
4. Default costs
5. None of the above

Q. Which of the following statement is false?

1. Unsecured

2. Secured

3. Convertible

4. Redeemable