Issued at Premium and Redeemed at Premium

Q.

Can input GST be claimed on fixed assets?

Q.

Can we claim GST on fixed assets?

Q.

B.Ltd., issued 1, 000, 12% Debentures of Rs. 100 each on January 1, 2015 at a discount of 5% redeemable at par.

Give Journal entries relating to the issue of debentures and debentures interest for the period ending December 31, 2015 assuming that interest is paid half yearly on June 30 and December 31 and tax deducted at source is 10%. B. Ltd., follows calendar year as its accounting year.

Q.

What is meant by 'Mortgaged Debentures'?

Q.

What is meant by a debenture? Explain the different types of debentures?

Q.

When debentures are issued at premium & redeemed at premium, the securities premium account is credited with ___

1. Nominal value of the debentures

2. Premium on redemption

3. None of these

4. Premium on issue of debentures

Q. When the money for application of debentures is received, we will debit account.

1. debentures
2. bank
3. application
4. debenture-holders

Q.

It is a short-term, negotiable, self-liquidating instrument that is used to finance the credit sales of firms.

1. Commercial bill

2. Call money

3. None of the above

4. Commercial papers

Q. When shares are issued at premium and redeemed at premium, the account is debited while making the payment to debentureholders.

1. debentures
2. bank
3. application
4. debenture-holders

Q.

When debentures are issued at premium & redeemed at premium, the loss on issue of debentures account is debited with ___

1. Not debited

2. Premium on redemption

3. Premium on issue of debentures

4. Nominal value of the debentures

Q.

The journal entry for recognition of premium on redemption is :

1. None of these

2. Profit or loss A/c Dr

   To Discount on issue of Debentures A/c

3. Loss on Issue of Debentures A/c Dr.

   To Premium on redemption of Debentures A/c

4. Profit or loss A/c Dr

   To Loss on issue of Debentures A/c

Q.

When debentures are issued at premium & redeemed at premium, the premium on redemption of debentures account is ___

1. Credited

2. None of these

3. Not effected

4. Debited

Q.

When debentures are issued at premium & redeemed at premium, the premium on redemption of debentures account is credited with ___

1. None of these

2. Premium on issue of debentures

3. Nominal value of the debentures

4. Premium on redemption

Q.

In which method of charging depreciation, the rate of interest is fixed?

Q. Select most appropriate alternative from those given below :

The debentures which are converted into shares is called____________.
a) converted debentures
b) non-convertible debenture
c) bearer debentures
d) unsecured debentures

Q. When debentures are issued at premium & redeemed at premium, the debentures account is credited with of debentures.

1. discount amount
2. premium amount
3. nominal value
4. issue price

Q.

When debentures are issued at premium & redeemed at premium, the debentures account is credited with ___

1. All of these

2. Premium on issue of debentures

3. Nominal value of the debentures

4. Premium on redemption

Q.

In which method of calculating depreciation, the rate of interest keeps on changing?

Q. Conversion of debenture into share capital results in _________.

1. no flow of fund
2. sources of funds
3. sources of cash
4. application of funds

Q. State, whether the following statements are True or False.

Share forfeited balance is transferred to Capital Reserve Account.

Q. State to whether the following statements are True/False.

The issue of debenture more than face value is termed on issue of debentures at par.

Q.

Explain the different types of debentures?

Q. When preference shares are redeemed out of divisible profits, a transfer to Capital Redemption Reserve can be made out of _____________.

1. securities premium account
2. capital reserve arising from forfeiture of shares
3. divided equalization reserve
4. unclaimed dividend account

Q. Select most appropriate alternative from those given below :

__________ debentures which are not secured against any charge on asset of the company.
a) Secured
b) Unsecured
c) Redeemable
d) Convertible