Home
Class 12
ACCOUNTS
When debentures are to be redeemed at pr...

When debentures are to be redeemed at premium an extra entry has to be made at the time of issue of debentures, which a/c should be credited in this entry ?

A

Loss on issue of debentures a/c

B

Debentures redemption premium a/c

C

Bank a/c

D

Debenture holder's a/c

Text Solution

Verified by Experts

The correct Answer is:
B
Promotional Banner

Topper's Solved these Questions

  • Financial Statements of Not-for-Profit Organisations

    DK GOEL|Exercise Multiple Choice Questions|36 Videos

  • REDEMPTION OF DEBENTURES

    DK GOEL|Exercise MCQ|6 Videos

Similar Questions

Explore conceptually related problems

A limeited company issued ₹ 1,00,000, 9% Debentures at a discount of 6% on 1st April, 2017, These debentures are to be redeemed equally, spead over 5 annual instalments. Pass the Journal entries for issue of debentures and writing off the discount.

Issue Of Debentures At Premium

on 1st April, 2018, Sunshine Ltd. Issed ₹ 10,00,000, 15% Debentures of ₹ 100 each at 8% discount payable: ₹ 40 on application, and The balance on allotment. These debentures were to be redeemed at a premium of 5% after five years. All the debentures were subcribed for by the public. Interest on these debentures was to be paid half-yearly which was duly paid by the company. You are required to: (i) Pass Journal entries in the first year of debenture issue (including entries for debenture interest.) (ii) Prepare 15% Debentures Account for the year ending 31st March, 2019.

Manish Ltd. Issued Rs. 40,00,000, 8% Debentures of Rs. 100 each on 1st April, 2017. The terms of issue started that the debentures are to be redeemed at a premium of 5% on 30th June, 2019. The company decided to transfer Rs. 10,00,000 out of profits to Debentures Redemption Reserve on 31st March, 2018 and Rs. 10,00,000 on 31st March, 2019. Pass Journal entries regarding the issue and redemption of debentures, DRR and Investment without providing for the interest or loss on issue of debentures.

A Ltd. Company has issued Rs 100,000, 9% debentures at a discount of 6% These debentures are to be redeemed equally spread over 5 annual instalments. Shown Discount on issue of debentures account for five years

DK GOEL-ISSUE OF DEBENTURES-MULTIPLE CHOICE QUESTIONS
  1. A' Limited purchased the assets from 'B' Limited for .Rs 5,40,000 . 'A...

    Text Solution

    |

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

    Text Solution

    |

  3. Debentures of a Company can be issued :

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

  8. Loss on Issue of Debentures is written off :

    Text Solution

    |

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

    Text Solution

    |

  10. Premium on Redemption of Debentures Account is :

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

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

    Text Solution

    |

  14. If Vendors are issued debentures of .Rs 80,000 in consideration of net...

    Text Solution

    |

  15. If Vendors are issued debentures of .Rs 4,40,000 in consideration of a...

    Text Solution

    |

  16. A Ltd. Issued 1,000, 10% debentures of .Rs 100 each at a premium of 5...

    Text Solution

    |

  17. On Ist April 2007, Sunrise Limited issued 5,000, 8 % debentures of .Rs...

    Text Solution

    |

  18. Globe Ltd. Issues 20,000, 9 % debentures of . Rs 100 each at a discou...

    Text Solution

    |

  19. Issued 5,000, 12% debentures of .Rs 100 each at a discount of 2 %, red...

    Text Solution

    |

  20. Issued 4,000 , 12% debentures of .Rs 100 each at a premium of 4%, rede...

    Text Solution

    |