CUET Accountancy 2023 Accountancy Set 2

XYZ Ltd. has been operating in the field of FMCG products in South Indian…

CUET Accountancy 2023 · Accountancy · 5 questions

XYZ Ltd. has been operating in the field of FMCG products in South Indian market. However, to expand its operation in northern part of India, it needs additional capital ₹ 20,00,000 which is raised by issuing 10% Debenture of ₹ 12,00,000 of ₹ 100 issued at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of ₹ 8,00,000 of ₹ 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of ₹ 5,00,000 from PNB against 5% debenture of ₹ 8,00,000 of ₹ 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

Question 1

XYZ Ltd. issues 10% debentures of ₹ 12,00,000 of ₹ 100 each at a discount of 10% which will be repayable after 6 years. What type of debenture it is?

A. Zero Coupon Rate Bonds /Debenture
B. Redeemable Debentures
C. Convertible Debenture
D. Irredeemable Debenture

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Question 2

XYZ Ltd. issued another category of debenture which are perpetual in nature. What type of debentures they are called:

A. Irredeemable Debentures
B. Convertible Debenture
C. Redeemable Debentures
D. Bearer Debentures

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Question 3

While issuing 10% debenture of ₹ 12,00,000 at 10% discount. What amount should be transferred to "Discount on issue of debenture A/c" if all amount is received in one instalment?

A. ₹ 10,000
B. ₹ 12,000
C. ₹ 1,20,000
D. ₹ 1,00,000

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Question 4

If 5% debenture of ₹ 8,00,000 of ₹ 100 were issued at 15% premium. Amount is payable as ₹ 25 on applications, ₹ 50 on allotment and 40 on 1st and final call. How much amount should be credited to "Security Premium Reserve A/c".

A. ₹ 1,20,000
B. ₹ 8,00,000
C. ₹ 9,20,000
D. ₹ 1,00,000

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Question 5

Company raised a loan of ₹ 5,00,000 from PNB against 5 % debenture of ₹ 8,00,000 of ₹ 100 each as a collateral security. The "Debenture suspense A/c" will be debited with: -

A. ₹ 5,00,000
B. ₹ 3,00,000
C. ₹ 8,00,000
D. ₹ 13,00,000

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