Match List I with List II Choose the correct answer from the options given below:List - I List - II (A) Secured debenture (III) Charge is created on the assets of the company (B) Registered debenture (II) Convertible into equity share (C) Convertible debenture (I) Do not carry a specific rate of interest (D) Zero coupon debenture (IV) Details of debenture holder are entered in register
A-III, B-IV, C-II, D-I
Correct Answer:
(A) - (III), (B) - (IV), (C) - (II), (D) - (I)
Solution:
Secured debenture creates a charge on the company’s assets (A matches III).
Registered debenture means the holder’s details are recorded in the register (B matches IV).
Convertible debenture can be converted into equity shares (C matches II).
Zero coupon debenture does not pay interest (D matches I).
Quick Tip:
Secured debentures are backed by assets, registered debentures have holder information recorded, convertible debentures can be converted into shares, and zero coupon debentures do not pay periodic interest.
Important Questions from Accounting for Debentures
When debentures are issued at a premium and redeemed at a premium, the journal entry will have the following combination:
(A) Discount on issue of debentures account is credited
(B) Loss on issue of debentures account is debited
(C) Security premium account is credited
(D) Premium on redemption of debentures account is credited
Choose the correct answer from the options given below:
Arrange the following in the correct sequence in the context of debenture:
(A) Payment to debenture-holders
(B) Creation of DRR
(C) Issue of debentures
(D) Redemption becomes due
Choose the correct answer from the options given below:
Balance of Debenture Redemption Reserve A/c after the redemption of debenture is credited to:
Calculate the number of Debentures issued by A Ltd. for consideration other than cash:
‘Discount on issue of debenture’, which is to be written off under one operating cycle is shown under:
