Issued at a Discount and Redeemed at Premium

Q. When debentures are issued at a discount and are redeemable at a premium, which of the following account is debited at the time of issue?

1. Debentures account
2. Premium on redemption of debenture account
3. Loss on issue of debenture account
4. None of these

Q.

What is meant by ‘Issue of debentures for Consideration other than Cash’?

Q.

Explain the different terms for the issue of debentures with reference to their redemption.

Q. ABC Ltd issued 1, 000 debentures of Rs.100 each for Rs.85 and are repayable for Rs.110 each. While repayment, the bank account is debited with .

1. Rs. 85, 000
2. Rs. 1, 00, 000
3. Rs. 1, 10, 000
4. Rs. 93, 500

Q.

What journal entries will be made in the following cases when company redeems debentures at the expiry of period by serving the notice: (a) when debentures were issued at par with a condition to redeem them at premium; (b) when debentures were issued at premium with a condition to redeem that at par; and (c) when debentures were issued at discount with a condition to redeem them at premium?

Q. ABC Ltd issued 1, 000 debentures of Rs.100 each for Rs.85 and are repayable for Rs.110 each. At the time of receipt, the bank account is credited with.

1. Rs. 85, 000
2. Rs. 1, 00, 000
3. Rs. 1, 10, 000
4. Rs. 93, 500

Q.

Can a company purchase its own debentures in the open market? Explain.

Q.

What is discount on issue of debentures?

Q. Select most appropriate alternative from those given below :

The issue of debentures more than face value is called___________.
a) at par
b) at discount
c) at premium
d) none of these

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

What is meant by redemption of Debentures?

Q. Question