Does the procedure for the issue of debentures is very much similar to that of the issue of shares?

Irredeemable

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Redeemable

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Unsecured

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Secured

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Solution

The correct option is A
Irredeemable

Yes, the procedure for the issue of debentures is very much similar to that of the issue of shares

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Similar questions

Q. Nirbhai Chemicals Ltd. issued ₹ 10,00,000; 6% Debentures of ₹ 50 each at a premium of 8% on 30th June, 2018 redeemable on 30th June, 2019. The issue was fully subscribed. Pass Journal entries for issue and redemption of debentures. How much amount should be transferred to Debentures Redemption Reserve before redemption of debentures? Also, state how much amount should be invested in specified securities?

Q. Which of the following are the debentures from the point of tenure?
a. Unsecured debenture.
b. Redeemable debenture.
c. Irredeemable debenture.
d. Secured debenture

Beeta Ltd, issued 5,000, $9 %$ debentures of Rs 500 each. Pass the necessary journal entries for the issue of Debentures in the books of the company in the following cases:

(i) When debentures are issued at $10 %$ premium and redeemable at par.

(ii) When debentures are issued at par and redeemable at $10 %$ premium.

(iii) When debentures are issued at $5 %$ premium and redeemable at $10 %$ premium.

(iv) When debentures are issued at $25 %$ to the vendors for machinery purchased for Rs 6,25,000.

Q. Tetley Ltd. issued 10,000,9% Debentures of ₹ 100 each at a discount of 5% redeemable at the end of 5 years at a premium of 10%. Tetley Ltd. has a balance of ₹ 50,000 in Securities Premium Reserve . Loss on Issue of debentures is to be written off equally over the life of debentures.
Pass the journal entries for writing off the Loss on Issue of Debentures.

Give journal entries for the issue of debentures in the following conditions.

I. Issued 2,000, $12 %$ debentures of Rs 100 each at par, redeemable also at par.

II. Issued 2,000, $12 %$ debentures of Rs 100 each at a discount of $12 %$ , redeemable at par.

III. Issued 2,000, $12 %$ debentures of Rs 100 each at a premium of $5 %$ , redeemable at par.

IV. Issued 2,000, $12 %$ debentures of Rs 100 each at par but redeemable at $5 %$ premium.

V. Issued 2,000, $12 %$ debentures of Rs 100 each at a discount of $2 %$ , redeemable at a premium of $5 %$ .

VI. Issued 2,000, $12 %$ debentures of Rs 100 each at a premium of $5 %$ , redeemable at a premium of $10 %$ .

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Does the procedure for the issue of debentures is very much similar to that of the issue of shares?

The correct option is A Irredeemable Yes, the procedure for the issue of debentures is very much similar to that of the issue of shares

The correct option is A
Irredeemable

Yes, the procedure for the issue of debentures is very much similar to that of the issue of shares