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The debentures whose principal amount is...

The debentures whose principal amount is not repayable by the company during its life time, but the payment is made only at time of Liquidation of the company , such debentures are called :
bearer debentures
redeemable debentures
irredeemable debentures
non-convertible debentures

A

Bearer Debentures

B

Redeemable Debentures

C

Irredeemable Debentures

D

Non - Convertible Debentures

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Verified by Experts

The correct Answer is:
C
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Ananya Ltd'. had an authorised capital of Rs. 10,00,00,000 divided into 10,00,000 equity shares of Rs. 100 each. The company had already issued 2,00,000 shares. The divident paid per share for the year ended 31 st March, 2007 was Rs. 30. The management decided to export its products to african countries. To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directiors: (a) Issue 47,500 equity shares at a premium of Rs. 100 per (b) Obtain a long-term loan from bank which was available at 12% are annum. (c ) Issue 9% Debentures at a discount of 5% After evaluating these alternatives, the company decided to issue 1,00,000, 9% Debentures on 1 st April, 2008. The face value of each debenture was Rs. 100. These debentures were redeemable in four instalments starting from the end third year, which were as follows : {:("Year",III,IV,V,VI),("Amount (Rs.)","10,00,000","20,00,000","30,00,000","40,00,000"):} Prepare 9% Debenture Account from 1st April, 2008 till all the debentures were redeemed.

Bharat Ltd. had an authorised capital of Rs. 20,00,000 divided into 2,00,000 equity shares of Rs. 10 each. The company issued 1,00,000 shares and the divident per share was Rs. 2 for the year ended 31st March, 2008. The management of the company decided to export its products to the neighbouring countries Nepat, Bhutan, Sri Lanka and Bangladesh. To meet the requirement of additional funds, the financial manager of the company put up the following three alternatives before its Board of Directors: (i) Issue 54,000 equity shares. (ii) Obtain a loan from Import and Export Bank of India. The loan was available at 12% per annum interest. (iii) To issue 9% Debentures at a discount of 10% . after comparing the available alternatives the company decided on 1st April, 2008 to issue 6,000, 9% Debentures of Rs. 100 each at a discount of 10% . These debentures were redeemable in four instalments starting from the end of third year. The amount of debentures to redeemed at end of third, fourth, fifth and sixth year was as follows: {:("Years",,,"profit Rs."),(III,,,"1,00,000"),(IV,,,"1,00,000"),(V,,,"2,00,000"),(VI,,,"2,00,000"):} Prepare 9% Debentures Account for the years 2008-09 to 2013-14.

DK GOEL-ISSUE OF DEBENTURES-MULTIPLE CHOICE QUESTIONS
  1. Which of the following statement is false :

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  2. The Principal amount of debentures will be rapaid by the company eithe...

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  3. The debentures whose principal amount is not repayable by the company ...

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  4. Debenture Application Account is in the nature of

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  5. Discount on issue of Debentures is in the nature of

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  6. Premium received on issue of debentures may be utilised for :

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  7. A' Limited purchased the assets from 'B' Limited for .Rs 5,40,000. 'A'...

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  8. A' Limited purchased the assets from 'B' Limited for .Rs 5,40,000 . 'A...

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  9. A' Limited purchased the assets from 'B' Limited for .Rs 8,10,000. 'A'...

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  10. Debentures of a Company can be issued :

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  11. On issue of debentures as a collateral security, which account is cre...

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  12. Debentures issued as collateral security will be debited to :

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  13. When debentures of .Rs 1,00,000 are issued as Collateral Security agai...

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  14. Interest on debentures issued as a collateral security is paid on :

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  15. Loss on Issue of Debentures is written off :

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  16. When debentures are to be redeemed at premium an extra entry has to be...

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  17. Premium on Redemption of Debentures Account is :

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  18. X Ltd. acquired assets of .Rs 20 lakhs and took over creditors of .Rs ...

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  19. X Ltd. Purchased a building for .Rs 60,00,000 payable as 20 % in Cash...

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  20. Sunrise Ltd purchased a building for .Rs 5,00,000 payable as 15 % in c...

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