12th CBSE WT - 27 Answer Sheet

Q 1. A' Limited purchased the assets for 'B' Limited for Rs.5,40,000.
'A' Limited issued

10% debentures of Rs.100 each at 10% discount against the payment. The number
of debentures received by 'B' Limited will be:
1. 54,000
2. 5,400
3. 60,000
4. None of the above
Q 2. A' Limited purchased the assets for 'B' Limited for Rs.5,40,000. 'A' Limited issued
20% debentures of Rs.100 each at 10% discount against the payment. The number
1. 4,500
2. 5,400
3. 45,000
4. 6,000
Q 3. A' Limited purchased the assets from 'B' Limited for ? 8,10,000. 'A' Limited issued
10% debentures of ? 100 each at 10% discount against the payment. The number
1. 8,100
2. 9,000
3. 90,000
4. The interest on it is paid to the holder irrespective of identity.
Q 4. Debentures of a Company can be issued:

1. For Cash
2. For Consideration other than Cash
3. As a Collateral Security
4. Any of the above
Q 5. On issue of debentures as a collateral security, which account is credited?

1. Debentures Account
2. Bank Loan Account
3. Debenture Holdings Account
4. Debenture Suspense Account
Q 6. Debentures issued as collateral security will be debited to:

1. Bank Account
2. Debentures Suspense Account
3. Debentures Account
4. Bank Loan Account
Q 7. When debentures of? 1,00,000 are issued as Collateral Security against a loan of ?
1,50,000, the entry for issue of debentures will be:
1. Credit Debentures? 1,50,000 and debit bank A/c ? 1,50,000
2. Debit Debenture Suspense A/c? 1,00,000 and Credit bank A/c ? 1,00,000
3. Debit Debenture Suspense A/c? 1,00,000 and Credit Debentures A/c ?
1,00,000.
4. Debit Cash A/c ? 1,50,000 and credit Bank A/c ? 1,50,000
Q 8. Interest on debentures issued as a collateral security is paid on:

1. Nominal Value of debentures
2. No interest is paid
3. Face value of debentures
4. Paid up value of debentures
Q 9. Loss on Issue of Debentures is written off:

1. In the year of the issue of debentures
2. During the life of the debentures
3. Within 3 years of the issue of debentures
4. In the year of redemption of debentures
Q 10. 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?
1. Loss on issue of debentures a/c
2. Debenture redemption premium a/c
3. Bank a/c
4. Debenture holder's a/c
Q 11. X Ltd. acquired assets of ? 20 lakhs and took over creditors of ? 20 thousand from
Y Ltd. X Ltd. issued 8% debentures of ? 200 each at a discount of 10% as purchase
consideration. Number of debentures issued will be:
1. 11,000
2. 9,000
3. 10,000
4. 10,100
Q 12. X Ltd. purchased a building for ? 60,00,000 payable as 20% in Cash and balance
by allotment of 85 debentures of ? 500 each at a premium of 20%. Number of
debentures issued will be:
1. 9,600
2. 8,000
3. 12,000
4. 10,000
Q 13. Sunrise Ltd purchased a building for ? 5,00,000 payable as 15% in cash and
balance by allotment of 9% debentures of ? 100 each at a premium of 25%. Number
of debentures issued will be:
1. 4,250
2. 4,000
3. 5,000
4. 3,400
Q 14. If Vendors are issued debentures of ? 80,000 in consideration of net assets of ?

1,00,000, the balance of ? 20,000 will be credited to:
1. Statement of Profit & Loss
2. Goodwill Account
3. General reserve Account
4. Capital Reserve Account
Q 15. If Vendors are issued debentures of ? 4,40,000 in consideration of assets of ?

5,00,000 and liabilities of ? 1,00,000, the balance of ? 40,000 will be debited to:
1. General reserve Account
2. Capital Reserve Account
3. Goodwill Account
4. Statement of Profit & Loss
Q 16. A Ltd. issued 1,000, 10% debentures of ? 100 each at a premium of 5%. What will
be the total amount of interest for one year:
1. ? 10,500
2. ? 10,000
3. ? 5,250
4. ? 5,000
Q 17. On 1st April 2007, Sunrise Limited issued 5,000, 8% debentures of ? 100 each at
a discount of 5%. What will be the total amount of interest for the year ending 31st
March 2008?
1. ? 38,000
2. ? 42,000
3. ? 40,000
4. ? 25,000
Q 18. Globle Ltd. issues 20,000, 9% debentures of ? 100 each at a discount of 5%

redeemable at the end of 5 years at a premium of 6%. For what amount 'Loss on
Issue of Debentures Account' will be debited?
1. ? 1,00,000
2. ? 1,20,000
3. ? 2,80,000
4. ? 2,20,000
Q 19. Issued 5,000, 12% debentures of? 100 each at a discount of 2%, redeemable at a
premium of 5%. In such case:
1. Loss on Issue will be Credited by? 10,000.
2. Loss on Issue will be debited by? 35,000.
3. Premium on Redemption will be debited by? 25,000.
4. Premium on Redemption will be credited by? 35,000.
Q 20. Debenture holders are:

1. Owners of the company
2. Debtors of the company
3. Creditors of the company
4. Promoters of the company

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Q 1. A' Limited purchased the assets for 'B' Limited for Rs.5,40,000.

'A' Limited issued

Q 4. Debentures of a Company can be issued:

Q 5. On issue of debentures as a collateral security, which account is credited?

Q 6. Debentures issued as collateral security will be debited to:

Q 8. Interest on debentures issued as a collateral security is paid on:

Q 9. Loss on Issue of Debentures is written off:

Q 14. If Vendors are issued debentures of ? 80,000 in consideration of net assets of ?

Q 15. If Vendors are issued debentures of ? 4,40,000 in consideration of assets of ?

Q 18. Globle Ltd. issues 20,000, 9% debentures of ? 100 each at a discount of 5%

Q 20. Debenture holders are:

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