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
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:
If the consideration for issue of Debentures is less than the amount of debentures issued, then the difference is:
When Debentures are issued at par and are redeemable at a premium, the Loss on such an issue is debited to:
