10,000 equity shares of 10 Rs. each were issued to public at a premium of ₹ 2 per share payable on allotment. Applications were received for ₹ 12,000 shares. Amount of securities premium account will be :
1. ₹ 20,000
2. ₹ 24,000
3.₹ 4,000
4. ₹ 1,600
6,000 debentures of ₹ 10 each where discharged by issuing equity shares of ₹ 10 each at 20% premium. The number of shares issued will be :
1.50,000
2.60,000
3.5,000
4.6,000
A company is registered with a share capital of ₹ 1,00,000 Rs. divided into ₹ 10,000 shares of ₹ 10 each. Of these shares 9,990 shares are held by Rajeev and 10 Shares are held by Sanjay. In the eye of law it is treated as:
1.Partnership
2.Private Company
3. Public Compancy
4.Government Company
A company issued 1,000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for:
1.Rate of dividend
2. Rate of Tax
3. Rate of interest
4. None of these
A company issued 1000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for :
1.Rate of Dividend
2.Rate of Tax
3. Rate of Interest
4. None of these
A company should transfer to Debenture Redemption Reserve A/c at least what percent of the amount of debentures issued before the commencement of redemption of debentures-
1. 50%
2. 25%
3.15%
4.100%
A Ltd. purchased a machinery for 1,80,000 Rs. for which it is paying by issue of shares of 100 Rs. each at 20% premium. How many shares will be issued as consideration. ?
1. 2,500
2.2,000
3.1,500
4. 3,000
A Sinking Fund is a part of:
1.Fixed Liabilities
2. Current Liabilities
3.Reserves and Surplus
4.Fixed Assets
According to SEBI guidelines what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redumption of debentures, in case of convertible debentures ?
1.25%
2.50%
3.100%
4.zero
According to SEBI guidelines, a Company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued:
1. 50%
2. 25%
3. 70%
4.100%
According to Section 52 of the Compaines Act, the amount in the Securities Premium Account cannot be used for the purpose of:
1. Issue of fully Paid Bonus Shares
2.Writing Off Losses of the Company
3. Writing off Preliminary Expenses
4.Writing Off Commission or Discount on Issue of Shares
BST Ltd. want to redeem its 900, 10% debentures at 105% by converting them into shares of ₹ 10 each at ₹ 9 each. The number of shares to be issued will be :
1. 9,000 Shares
2. 10,500 Shares
3.10,000 Shares
4. 8,500 Shares
Debenture holders are the :
1. Customers of the Company
2.Owners of the Company
3.Creditors of the Company
4.None of these
Debenture is a :
1.Loan certificate
2. Cash certificate
3. Credit certificate
4.None of these
Debentures can be redeemed out of:
1. Profit
2. Capital
3. Provision
4. All of the above
Debentures cannot be redeemed at:
1.Par
2.Premium
3. Discount
4. More than 10% premium
Debentures which are transferred by mere delivery are called:
1. Registered Debentures
2. First Debentures
3.Bearer Debentures
4. None of these
Deep Ltd. issue 10,00,000, 7 % debentures of 100 Rs. each at a discount of 4%, redeemable after 5 years at a premium of 6%. Loss issue of debentures is :
1. ₹ 10,00,000
2.₹ 6,00,000
3. ₹ 16,00,000
4. ₹ 4,00,000
Discount on issue of Debentures is in the nature of:
1.Revenue Loss
2.Capital Loss
3. Deferred Revenue Expenditure
4. None of there
Dividends are usually paid on :
1.Authorised Capital
2. Issued Capital
3. Called-up Capital
4.Paid-up Capital
Every company required to create DRR shall on or before the 30th April of each year, deposit or invest, a sum which shall not be less than…………of the amount of its debentures maturing (to be redeemed) during the year ending on 31st March of the next year.)
1. 10%
2. 15%
3.25%
4. 50%
If debenture of ₹ 1,00,000 were issued for discount of ₹ 10,000, which are redeemable after four years. Then amount of discount to be written off from P. & L. Account each year is :
1. ₹ 3,000
2. ₹ 4,000
3.₹ 2,500
4. ₹ 5,000
If debentures of ₹ 4,50,000 are issued for the consideration of net assets of ₹ 5,00,000 balance ₹ 50,000 will be credited to:
1.Profit & Loss A/c
2.Goodwill A/c
3.General Reserve A/c
4.Capital Reserve A/c
If debentures purchased in open market are not immediately cancelled, they are treated as :
1.Current Assets
2. Current Liabilities
3. Investment
4.Capital
If redemption of debentures is made by conversion method, the amount to be transferred to ‘Debenture Redemption Reserve Account’ will be equal to…….percent of converted amounted.
1.40
2.50
3.60
4.Not required
If vendors are issued fully paid shares of ₹ 1,00,000 in consideration of net assets of ₹ 1,20,000 the balance of ₹ 20,000 will be credited to :
1.Goodwill Account
2. Capital Reserve Account
3.Vendor’s Account
4. Profit & Loss Account
In case of issue of debentures as a collateral security for loan from the bank which account will be debited :
1.Bank Account
2. Bank Loan Account
3. Debentures Account
4. Debentures Suspense Account
In the Balance Sheet of a Company, Debentures are shown under the head :
1.Unsecured Loans
2. Long-term Loans
3. Current Liabilities
4. Reserve and Surplus
Interest on sinking fund investment is credited to :
1.Profit & Loss A/c
2.Sinking Fund A/c
3.General Reserve A/c
4. Sinking Fund Investment A/c
Loss on Issue of Debenture Account is shown:
1.On Assets side of Balance Sheet
2.On Liabilities side of Balance Sheet
3. On Credit side of P & L Account
4.None of these
Own debentures are those debentures of the company which ?
1. The company allots to its own promotors
2.The company allots to its directors
3. The company purchases from the markets and hold them as investments
4. None of these
Premium on Redemption of Debentures A/c is in the nature of:
1. Personal A/c
2.Real A/c
3. Nominal A/c
4. None of these
Premium on Redemption of Debentures A/c is:
1.Asset
2. Expenses
3.Liability
4. Revenue
Premium on redemption of debentures is a :
1. Personal A/c
2.Real A/c
3.Nominal A/c
4. Suspense A/c
Premium on redemption of debentures is generally provided at the time of ……………
1.Issue of debentures
2. Redemption of debentures
3.Writing off
4.After 10 years
Profit on cancellation of own debentures is :
1.Revenue Profit
2.Capital Profit
3.Operating Profit
4. Trading Profit
Profit on cancellation of own debentures is transferred to:
1. Profit & Loss Account
2. Profit & Loss Appropriation Account
3.General Reserve Account
4. Capital Reserve Account
Profit on redemption of debentures in transferred to which account ?
1.Capital Reserve Account
2.Sinking Gund Account
3.General Reserve Account
4. Profit & Loss Account
Profit on sale of debentures redemption fund investment in the first instance in credited to :
1.Debenture Redemption Fund A/c
2.Profit & Loss Appropriation A/c
3.General Reserve A/c
4.Sinking Fund A/c
Profit on sale of Sinking Fund Investment is transferred to:
1.Profit & Loss Account
2. General Reserve
3. Sinking Fund Account
4. Capital Reserve
Right Shares are issued to :
1.Promoters for the Services
2.Holders of Convertible Debentures
3.Existing Shareholders
4. All of the above
Sinking fund investment is:
1. An Income
2. An exause
3.An Asset
4.A Liability
Sources of finance of the redemption of debentures are:
1.Redemption out of profits
2. Redemption out of capital
3.The proceeds from fresh issue of shares/debentures
4.All the above
The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to :
1.Profit & Loss Account
2.Profit & Loss Appropriation Account
3. General Reserve Account
4. Sinking Fund Account
When all debentures are redeemed, balance in the Debenture Redemption Fund Account is transferred to:
1.Capital Reserve
2.General Reserve
3. Profit & Loss Appropriation A/c
4. None of these
When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue ?
1.Debentures A/c
2.Premium on Redemption of Debentures A/c
3.Loss on Issue of Debentures A/c
4.Profit & Loss A/c
When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to :
1.Profit & Loss A/c
2.Debenture Application and Allotment A/c
3.Loss on Issue of Debentures A/c
4. Premium on Redemption A/c
When debentures are redeemed out of profits, an equivalent amount is transferred to :
1.General Reserve
2.Debenture Redemption Reserve
3. Capital Reserve
4. Profit & Loss A/c
Which account should be debited when shows an issued to promoters:
1.Share Capital A/c
2.Assets A/c
3.Promoter’s A/c
4.Goodwill A/c
Which of the following should be deducted from the called-up capital to find out paid-up capital:
1. Calls-in-advance
2.Calls-in-arrear
3. Share forfeiture
4. Discount on issue of shares