This document contains 33 questions related to the issue and redemption of debentures. The questions cover various scenarios involving journal entries for issuing debentures at par, premium or discount, and redeeming debentures at par, premium or through conversion to equity or preference shares. Examples include entries for partial redemption over multiple years, redemption with premium, and issue of debentures as consideration for purchase of assets.
Cbse class 12 accountancy sample paper 1mycbseguide
This document outlines the design of a question paper for Accountancy (Class XII). It provides details on:
1) The weightage and distribution of marks across content areas, forms of questions, number of sections, and difficulty levels of questions.
2) Sample questions are provided to illustrate the different forms of questions including very short answer, short answer, and long answer questions.
3) Guidelines are given for the structure of the paper including instructions, number of parts, internal choices, and values-based questions.
The question paper aims to comprehensively test students on key concepts in Accountancy while maintaining an appropriate level of difficulty. Sample questions and guidelines provide transparency into the exam format and expectations.
Cbse class 12 accountancy sample paper 01 (for 2012)mycbseguide
The document provides details on the design of a question paper for Accountancy class 12 board exam. It includes:
1) Weightage of marks for different content units like accounting for not-for-profit organizations, partnership firms, companies etc.
2) Weightage of marks for different question forms like very short answer, short answer, long answer questions.
3) The question paper will have 3 sections A, B and C with internal choices.
4) Details on the estimated difficulty level of questions with 20% each in the easy, difficult categories and 60% in average.
This document is a question paper for an Accountancy exam containing 16 multi-part questions. It provides instructions that the exam is 3 hours, has 2 parts (A and B), and contains value-based questions. The questions cover various topics related to partnership accounts, company accounts, debentures, and changes in partnership. For example, question 6 asks students to pass journal entries related to admitting a new partner who will pay capital and premium for goodwill. Question 15 asks students to prepare revaluation, capital, and balance sheet accounts given financial information and retirement of a partner.
Cbse class 12 accountancy sample paper 01 (for 2013)mycbseguide
This document contains a model paper for Accountancy with 16 multiple choice questions and short answer/numerical problems. Some key details:
- Question 8 asks to prepare a profit and loss appropriation account for a partnership with given capital amounts, profit sharing ratios, and other terms.
- Question 9 asks to record journal entries for redemption of debentures into equity shares.
- Question 10 asks to record entries for payment of interest on debentures along with tax deducted at source.
- The document tests various accounting concepts relating to partnerships, companies, financial statements, and cash flow statements. Numerical problems cover areas like admission/retirement of partners, issue/redemption of shares and debent
This document provides multiple choice questions and solutions related to company accounts. It covers topics like shareholders' equity, issue and redemption of shares, debentures, preference shares, dividends, and balance sheets. For example, it explains how to calculate the amount of dividend payable based on the proposed dividend rate and called-up equity share capital. It also shows calculations for determining the number of equity shares to be issued to raise funds for redeeming preference shares.
The document discusses the accounting treatment for forfeiture of shares. It provides details about forfeiture of shares issued at par and premium. It also discusses journal entries for forfeiture of shares and reissue of forfeited shares. Some examples of journal entries for forfeiting shares due to non-payment of calls and later reissuing the forfeited shares are also given.
The document discusses various aspects of issuing shares by a company, including:
1) Shares can be issued at par value, at a premium or at a discount to par value. Premium shares are issued above par value while discount shares are issued below par value.
2) Shares issued for cash may be payable in a lump sum or in installments. Journal entries are provided for accounting for share application money, allotment money, and calls on shares.
3) The treatment of calls in arrear and calls in advance is explained, including relevant journal entries. Examples of journal entries for partial payment of calls and advance payment of future calls are given.
Cbse class 12 accountancy sample paper 1mycbseguide
This document outlines the design of a question paper for Accountancy (Class XII). It provides details on:
1) The weightage and distribution of marks across content areas, forms of questions, number of sections, and difficulty levels of questions.
2) Sample questions are provided to illustrate the different forms of questions including very short answer, short answer, and long answer questions.
3) Guidelines are given for the structure of the paper including instructions, number of parts, internal choices, and values-based questions.
The question paper aims to comprehensively test students on key concepts in Accountancy while maintaining an appropriate level of difficulty. Sample questions and guidelines provide transparency into the exam format and expectations.
Cbse class 12 accountancy sample paper 01 (for 2012)mycbseguide
The document provides details on the design of a question paper for Accountancy class 12 board exam. It includes:
1) Weightage of marks for different content units like accounting for not-for-profit organizations, partnership firms, companies etc.
2) Weightage of marks for different question forms like very short answer, short answer, long answer questions.
3) The question paper will have 3 sections A, B and C with internal choices.
4) Details on the estimated difficulty level of questions with 20% each in the easy, difficult categories and 60% in average.
This document is a question paper for an Accountancy exam containing 16 multi-part questions. It provides instructions that the exam is 3 hours, has 2 parts (A and B), and contains value-based questions. The questions cover various topics related to partnership accounts, company accounts, debentures, and changes in partnership. For example, question 6 asks students to pass journal entries related to admitting a new partner who will pay capital and premium for goodwill. Question 15 asks students to prepare revaluation, capital, and balance sheet accounts given financial information and retirement of a partner.
Cbse class 12 accountancy sample paper 01 (for 2013)mycbseguide
This document contains a model paper for Accountancy with 16 multiple choice questions and short answer/numerical problems. Some key details:
- Question 8 asks to prepare a profit and loss appropriation account for a partnership with given capital amounts, profit sharing ratios, and other terms.
- Question 9 asks to record journal entries for redemption of debentures into equity shares.
- Question 10 asks to record entries for payment of interest on debentures along with tax deducted at source.
- The document tests various accounting concepts relating to partnerships, companies, financial statements, and cash flow statements. Numerical problems cover areas like admission/retirement of partners, issue/redemption of shares and debent
This document provides multiple choice questions and solutions related to company accounts. It covers topics like shareholders' equity, issue and redemption of shares, debentures, preference shares, dividends, and balance sheets. For example, it explains how to calculate the amount of dividend payable based on the proposed dividend rate and called-up equity share capital. It also shows calculations for determining the number of equity shares to be issued to raise funds for redeeming preference shares.
The document discusses the accounting treatment for forfeiture of shares. It provides details about forfeiture of shares issued at par and premium. It also discusses journal entries for forfeiture of shares and reissue of forfeited shares. Some examples of journal entries for forfeiting shares due to non-payment of calls and later reissuing the forfeited shares are also given.
The document discusses various aspects of issuing shares by a company, including:
1) Shares can be issued at par value, at a premium or at a discount to par value. Premium shares are issued above par value while discount shares are issued below par value.
2) Shares issued for cash may be payable in a lump sum or in installments. Journal entries are provided for accounting for share application money, allotment money, and calls on shares.
3) The treatment of calls in arrear and calls in advance is explained, including relevant journal entries. Examples of journal entries for partial payment of calls and advance payment of future calls are given.
Cbse class 12 accountancy sample paper 02 (for 2012)mycbseguide
This document contains a sample question paper for Accountancy Class XII with 16 questions covering various topics related to accounting for not-for-profit organizations, partnership firms, companies, financial statement analysis, and computerized accounting. The questions include both theoretical and numerical problems testing concepts such as preparation of accounts, calculation of interest on calls, treatment of goodwill, preparation of cash flow statements, and more. The paper provides general instructions for students regarding the structure and marking scheme.
This document contains a sample exam for a Financial Management course, with 5 multiple choice questions covering various topics in corporate finance. Question 1 has two parts asking about debenture pricing and calculating present value of rental income. Question 2 covers sources of working capital and calculating optimal order quantity. Question 3 covers project evaluation techniques and weighted average cost of capital. Question 4 addresses leverage calculation and factors influencing capital structure. Question 5 discusses dividend policy and the Modigliani-Miller hypothesis.
This document discusses various journal entries related to share capital transactions of a company. It begins by explaining the preparation of cash book and journal entries for share issue expenses. It then provides problems and solutions involving journal entries for issue of shares payable in installments, oversubscription and undersubscription of shares, issue of different classes of shares, and treatment of fractional shares and calls in arrears. It also discusses the presentation of share capital in the company's balance sheet as per the Companies Act.
This document provides instructions and questions for a summer exam on business laws. It includes 8 questions covering topics like alternate dispute resolution, contract law, partnership law, sale of goods act, company law, and more. Candidates are instructed to answer all questions in the 3 hour exam and additional reading time is provided.
This document contains an outline for an accounting 101 final exam with 65 multiple choice questions covering topics such as the Sarbanes-Oxley Act of 2002, accounting principles, forms of business organizations, the accounting equation, financial statements, adjusting entries, accounting cycle steps, stockholders' equity calculations, inventory methods, bank reconciliations, and more. It provides examples and definitions for many of the concepts that may be tested.
The document provides details about an accounting and business programme run by Afterscho☺ol Centre for social entrepreneurship. It includes journal entries for various accounting transactions such as admitting a new partner, revaluing assets, transferring reserves and calculating new capital balances. It also discusses topics such as preference shares, redemption of preference shares, and provides examples of journal entries for related transactions.
The document provides instructions for the CBSE Board Examination for 2010-2011. It includes details like the code number to write on the answer booklet, checking that the question paper contains the correct number of questions, and the time allotted to read the paper. The paper contains three parts - Part A is compulsory and covers topics like accounting for not-for-profit organizations, partnerships, and companies. Parts B and C cover additional topics and candidates can only attempt one of these parts. The document provides sample questions and answers to help prepare for the examination.
This document discusses accounting for debentures. It defines debentures as a written acknowledgment of debt issued by a company under its seal. The document then outlines six journal entries for issuing debentures under different terms, such as being issued at par/premium/discount and redeemed at par/premium. It also provides brief explanations of debentures, reasons for investing in them, how they can be categorized, the nature of premium on redemption accounts, and differences between debentures and shares.
The balance sheet of Bharat Industries Ltd. shows an increase in total assets from Rs. 7,63,280 to Rs. 8,70,000 over the previous year. Current assets increased by Rs. 1,10,400 primarily due to rises in stock, debtors, and bills receivable. Issued share capital remained at Rs. 3,50,000 while reserves and secured loans also increased. Current liabilities rose by Rs. 16,720 resulting in a net working capital increase of Rs. 93,680. Liquidity ratios including the current ratio and acid test ratio improved from the previous year.
Issue of debentures by N. Bala Murali Krishnabala13128
The document discusses debentures, which are instruments issued by a company to raise funds through loans. It defines debentures and explains why companies issue them instead of shares. It then describes the different types of debentures based on security, redemption, negotiability, convertibility, priority, and coupon/interest rate. The document also covers the accounting treatment for issuing debentures for cash, premium, discount, as collateral, or for consideration other than cash. It discusses oversubscription of debentures and conditions for redemption. Finally, it provides journal entries for recording interest payment on debentures.
This document discusses debentures, which are instruments that companies issue to borrow money. It defines debentures as written documents acknowledging a debt that contains terms for repayment of principal and payment of interest. The document outlines different types of debentures based on security, tenure, convertibility, coupon rate, and registration. It also distinguishes debentures from shares and discusses how debentures can be issued for cash, including journal entries for issues at par, at a discount, and at a premium.
1) A debenture is a document issued by a company acknowledging a debt owed to the holder of the debenture. Debentures contain a promise to repay the principal amount on a specified date and pay interest at a fixed rate periodically.
2) Debentures can be issued by companies in exchange for cash, as collateral security for loans, or as consideration for purchases. Accounting entries are made to record the issue of debentures and receipt of any premium or discount.
3) Interest payment on debentures is recorded through debiting an Interest on Debentures account and crediting amounts to Debenture Holders and tax authorities. Accrued interest is tracked separately
KINDS OF DEBENTURES
CHARACTERISTICS OF DEBENTURES
Rules and Guidelines on Debentures
A debenture is the most important instrument and method of raising the loan capital by the company. A debenture is like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company’s capital structure, it does not become share capital.
The document discusses the accounting treatment for the issue of shares by a company. It covers issues such as shares issued for cash, shares issued at par value, premium or discount. It provides journal entries for recording the issue of shares at different stages - application, allotment and calls. It also discusses accounting for shares issued at a premium, with examples. Issue of shares at a discount is not allowed as per the Companies Act 2013 and is considered void.
The document is a study guide for the CBSE Board Examination for Accountancy Class XII. It contains instructions for students on how to fill out the exam including writing their code number on the answer booklet. It also provides an overview of the exam structure which has 3 parts: Part A is compulsory and covers Accounting for Partnership Firms and Companies, while students can choose to attempt either Part B or Part C. The document then provides sample questions and answers for Part A of the exam.
This document discusses the redemption of debentures by companies. It defines redemption as the repayment of debentures to debenture holders. Redemption can occur at maturity, before maturity if allowed, or through conversion to shares. Companies can redeem debentures through lump sum payment, by draw of lots, purchasing in the open market, or conversion. A debenture redemption reserve must be created under SEBI guidelines to fund redemption. The document provides examples of journal entries to record redemption of debentures at par and premium amounts.
Dokumen tersebut membahas tentang kebijakan dividen perusahaan yang mencakup pengertian, faktor-faktor yang mempengaruhi, teori-teori, bentuk, aspek, dan jadwal pembayaran dividen.
Traveller's cheques are a safe way to carry money when traveling abroad. They can be exchanged for cash at local banks and used to pay for hotels, restaurants, and shops. Unused cheques can be kept for a future trip as they do not expire. Traveller's cheques are insured against loss or theft and can be replaced if lost by providing the cheque numbers and receipt. Pounds sterling is generally the best currency to purchase traveller's cheques in for trips to Europe since it is widely accepted and avoids paying exchange rates twice if changing between currencies.
A debenture is a certificate issued by a company to acknowledge its debt obligation. It provides details of the loan terms including the amount owed and interest rate. Debentures can be classified in several ways such as secured vs unsecured, redeemable vs non-redeemable, registered vs bearer, convertible vs non-convertible, and by coupon/interest rate. Companies issue debentures to borrow money which becomes part of their capital structure.
Dokumen tersebut memberikan penjelasan mengenai definisi cek, ciri-ciri cek, jenis-jenis cek, tandatangan pada cek, pemalangan cek, dan tugas serta perlindungan bank pembayar dan bank pemungut berdasarkan Undang-Undang Bil Pertukaran 1949.
Cbse class 12 accountancy sample paper 02 (for 2012)mycbseguide
This document contains a sample question paper for Accountancy Class XII with 16 questions covering various topics related to accounting for not-for-profit organizations, partnership firms, companies, financial statement analysis, and computerized accounting. The questions include both theoretical and numerical problems testing concepts such as preparation of accounts, calculation of interest on calls, treatment of goodwill, preparation of cash flow statements, and more. The paper provides general instructions for students regarding the structure and marking scheme.
This document contains a sample exam for a Financial Management course, with 5 multiple choice questions covering various topics in corporate finance. Question 1 has two parts asking about debenture pricing and calculating present value of rental income. Question 2 covers sources of working capital and calculating optimal order quantity. Question 3 covers project evaluation techniques and weighted average cost of capital. Question 4 addresses leverage calculation and factors influencing capital structure. Question 5 discusses dividend policy and the Modigliani-Miller hypothesis.
This document discusses various journal entries related to share capital transactions of a company. It begins by explaining the preparation of cash book and journal entries for share issue expenses. It then provides problems and solutions involving journal entries for issue of shares payable in installments, oversubscription and undersubscription of shares, issue of different classes of shares, and treatment of fractional shares and calls in arrears. It also discusses the presentation of share capital in the company's balance sheet as per the Companies Act.
This document provides instructions and questions for a summer exam on business laws. It includes 8 questions covering topics like alternate dispute resolution, contract law, partnership law, sale of goods act, company law, and more. Candidates are instructed to answer all questions in the 3 hour exam and additional reading time is provided.
This document contains an outline for an accounting 101 final exam with 65 multiple choice questions covering topics such as the Sarbanes-Oxley Act of 2002, accounting principles, forms of business organizations, the accounting equation, financial statements, adjusting entries, accounting cycle steps, stockholders' equity calculations, inventory methods, bank reconciliations, and more. It provides examples and definitions for many of the concepts that may be tested.
The document provides details about an accounting and business programme run by Afterscho☺ol Centre for social entrepreneurship. It includes journal entries for various accounting transactions such as admitting a new partner, revaluing assets, transferring reserves and calculating new capital balances. It also discusses topics such as preference shares, redemption of preference shares, and provides examples of journal entries for related transactions.
The document provides instructions for the CBSE Board Examination for 2010-2011. It includes details like the code number to write on the answer booklet, checking that the question paper contains the correct number of questions, and the time allotted to read the paper. The paper contains three parts - Part A is compulsory and covers topics like accounting for not-for-profit organizations, partnerships, and companies. Parts B and C cover additional topics and candidates can only attempt one of these parts. The document provides sample questions and answers to help prepare for the examination.
This document discusses accounting for debentures. It defines debentures as a written acknowledgment of debt issued by a company under its seal. The document then outlines six journal entries for issuing debentures under different terms, such as being issued at par/premium/discount and redeemed at par/premium. It also provides brief explanations of debentures, reasons for investing in them, how they can be categorized, the nature of premium on redemption accounts, and differences between debentures and shares.
The balance sheet of Bharat Industries Ltd. shows an increase in total assets from Rs. 7,63,280 to Rs. 8,70,000 over the previous year. Current assets increased by Rs. 1,10,400 primarily due to rises in stock, debtors, and bills receivable. Issued share capital remained at Rs. 3,50,000 while reserves and secured loans also increased. Current liabilities rose by Rs. 16,720 resulting in a net working capital increase of Rs. 93,680. Liquidity ratios including the current ratio and acid test ratio improved from the previous year.
Issue of debentures by N. Bala Murali Krishnabala13128
The document discusses debentures, which are instruments issued by a company to raise funds through loans. It defines debentures and explains why companies issue them instead of shares. It then describes the different types of debentures based on security, redemption, negotiability, convertibility, priority, and coupon/interest rate. The document also covers the accounting treatment for issuing debentures for cash, premium, discount, as collateral, or for consideration other than cash. It discusses oversubscription of debentures and conditions for redemption. Finally, it provides journal entries for recording interest payment on debentures.
This document discusses debentures, which are instruments that companies issue to borrow money. It defines debentures as written documents acknowledging a debt that contains terms for repayment of principal and payment of interest. The document outlines different types of debentures based on security, tenure, convertibility, coupon rate, and registration. It also distinguishes debentures from shares and discusses how debentures can be issued for cash, including journal entries for issues at par, at a discount, and at a premium.
1) A debenture is a document issued by a company acknowledging a debt owed to the holder of the debenture. Debentures contain a promise to repay the principal amount on a specified date and pay interest at a fixed rate periodically.
2) Debentures can be issued by companies in exchange for cash, as collateral security for loans, or as consideration for purchases. Accounting entries are made to record the issue of debentures and receipt of any premium or discount.
3) Interest payment on debentures is recorded through debiting an Interest on Debentures account and crediting amounts to Debenture Holders and tax authorities. Accrued interest is tracked separately
KINDS OF DEBENTURES
CHARACTERISTICS OF DEBENTURES
Rules and Guidelines on Debentures
A debenture is the most important instrument and method of raising the loan capital by the company. A debenture is like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company’s capital structure, it does not become share capital.
The document discusses the accounting treatment for the issue of shares by a company. It covers issues such as shares issued for cash, shares issued at par value, premium or discount. It provides journal entries for recording the issue of shares at different stages - application, allotment and calls. It also discusses accounting for shares issued at a premium, with examples. Issue of shares at a discount is not allowed as per the Companies Act 2013 and is considered void.
The document is a study guide for the CBSE Board Examination for Accountancy Class XII. It contains instructions for students on how to fill out the exam including writing their code number on the answer booklet. It also provides an overview of the exam structure which has 3 parts: Part A is compulsory and covers Accounting for Partnership Firms and Companies, while students can choose to attempt either Part B or Part C. The document then provides sample questions and answers for Part A of the exam.
This document discusses the redemption of debentures by companies. It defines redemption as the repayment of debentures to debenture holders. Redemption can occur at maturity, before maturity if allowed, or through conversion to shares. Companies can redeem debentures through lump sum payment, by draw of lots, purchasing in the open market, or conversion. A debenture redemption reserve must be created under SEBI guidelines to fund redemption. The document provides examples of journal entries to record redemption of debentures at par and premium amounts.
Dokumen tersebut membahas tentang kebijakan dividen perusahaan yang mencakup pengertian, faktor-faktor yang mempengaruhi, teori-teori, bentuk, aspek, dan jadwal pembayaran dividen.
Traveller's cheques are a safe way to carry money when traveling abroad. They can be exchanged for cash at local banks and used to pay for hotels, restaurants, and shops. Unused cheques can be kept for a future trip as they do not expire. Traveller's cheques are insured against loss or theft and can be replaced if lost by providing the cheque numbers and receipt. Pounds sterling is generally the best currency to purchase traveller's cheques in for trips to Europe since it is widely accepted and avoids paying exchange rates twice if changing between currencies.
A debenture is a certificate issued by a company to acknowledge its debt obligation. It provides details of the loan terms including the amount owed and interest rate. Debentures can be classified in several ways such as secured vs unsecured, redeemable vs non-redeemable, registered vs bearer, convertible vs non-convertible, and by coupon/interest rate. Companies issue debentures to borrow money which becomes part of their capital structure.
Dokumen tersebut memberikan penjelasan mengenai definisi cek, ciri-ciri cek, jenis-jenis cek, tandatangan pada cek, pemalangan cek, dan tugas serta perlindungan bank pembayar dan bank pemungut berdasarkan Undang-Undang Bil Pertukaran 1949.
Suratcara boleh niaga (SBN) adalah dokumen yang digunakan dalam urusniaga komersil dan kewangan untuk memindahkan hakmilik dari satu pihak ke pihak lain. SBN memiliki ciri-ciri seperti hakmilik berpindah melalui serahan, arahan, bayaran atau pengindorsan, dan penerima yang menerima dengan suci hati akan bebas dari sebarang tuntutan terdahulu. Contoh SBN termasuk cek,
A bill of exchange must be in writing, contain an unconditional order to pay a certain sum of money to a certain person or bearer, and be signed by the maker. There are three necessary parties to a bill of exchange: the drawer, drawee, and payee. To be a holder in due course, one must physically possess the instrument, receive it for consideration, and acquire it without knowledge of defects in title. A holder in due course can recover amounts from all previous parties and is protected against certain defenses. Similarly, a promissory note must meet certain requirements under law to be valid.
NEGOTIABLE INSTRUMENTS ACT, 1881
STRUCTURE
1.0 Objectives
1.1 Introduction
1.2 Meaning of Negotiable Instruments
1.3 Characteristics of a negotiable instrument
1.4 Presumptions as to negotiable instrument
1.5 Types of negotiable Instrument
1.5.1 Promissory notes
1.5.2 Bill of exchange
1.5.3 Cheques
1.5.4 Hundis
1.6 Parties to negotiable instruments
1.6.1 Parties to Bill of Exchange
1.6.2 Parties to a Promissory Note
1.6.3 Parties to a Cheque
1.7 Negotiation
1.7.1 Modes of negotiation
1.8 Assignment
1.8.1 Negotiation and Assignment Distinguished
1.8.2 Importance of delivery in negotiation
1.9 Endorsement
1.10 Instruments without Consideration
1.11 Holder in Due Course
Treasury bills are short-term government debt instruments issued to meet budgetary needs. They are issued at a discount to face value and mature at par. Treasury bills are considered very safe investments due to minimal risk of default and high liquidity. They are issued in maturities of 91 days, 182 days, and 364 days through auctions and provide the lowest yields among government securities due to their short duration. Major participants in the treasury bill market include banks, financial institutions, and corporations who use them for statutory liquidity requirements and short-term funds management.
Treasury bills are short-term debt instruments issued by the central government of India to borrow money for periods of less than one year. There are three types of treasury bills based on maturity periods: 91-day bills, 182-day bills, and 364-day bills. Treasury bills are issued at a fixed discount rate through auctions and provide a safe, liquid investment option for entities like commercial banks, state governments, and public sector financial institutions. The bills help the government meet its short-term borrowing needs and provide investors a tool to manage funds in the short-term.
Negotiable instruments are written documents that entitle the holder to a sum of money. There are three main types: promissory notes, bills of exchange, and checks. A promissory note contains an unconditional written promise by the maker to pay a specified sum of money. A bill of exchange is an unconditional order in writing from a drawer to a drawee requiring payment to a payee. A check is a written order from a depositor to a bank to pay a specified sum to a payee on demand.
Replication allows data from a MySQL master database to be synchronized with one or more slave databases. The master records all data changes in its binary log. Slave databases connect to the master and receive the binary log transactions, which they then apply locally to stay synchronized with the master database. Replication can be used for load balancing reads across multiple slave servers or for high availability by failing over to a slave if the master fails.
The document discusses the history and definitions of promissory notes and bills of exchange. It notes that early promissory notes originated in China in the Tang dynasty and were later used in trade between Italian city-states and Spain in the 14th century. The document defines a promissory note as a written promise by the maker to pay a sum of money to the payee at a fixed time, and a bill of exchange as an unconditional written order by a drawer directing the drawee to pay a sum to a payee. It outlines the essential elements and parties involved in each, including the maker, payee, drawee, and types of bills such as those for collection, discounted, or retired.
This document defines and describes different types of negotiable instruments. It begins by explaining that negotiable instruments are transferable written orders to pay a sum of money. The main types discussed are checks, promissory notes, and bills of exchange. Checks are drawn on a bank and payable on demand, while promissory notes contain an unconditional promise to pay, and bills of exchange contain an order to pay. The document outlines the key parties, features, and legal definitions of each type of instrument. It emphasizes that to be valid, a negotiable instrument must be in writing, signed, state a fixed sum to pay, and be freely transferable.
The document provides information about 14 accounting questions related to partnership accounts, redemption of debentures, employees stock option plan, underwriting of shares, buy back of securities, internal reconstruction, amalgamation of companies, liquidation of companies, financial statements of insurance companies, banking companies, electricity companies, departmental accounts. The questions include calculations and journal entries related to these accounting topics.
1. The document contains 15 multiple choice questions related to various accounting topics such as hire purchase transactions, departmental accounts, liquidation, and banking.
2. Question 1 asks the reader to calculate the cash value of an air conditioner purchased under a hire purchase agreement with 5 installments.
3. Question 2 provides details of computers sold on hire purchase and asks the reader to prepare the hire purchase trading account.
This document contains instructions and questions for an accountancy exam. It has 3 sections - Section A contains 7 short answer questions, Section B contains 4 multi-part questions, and Section C contains 2 long answer questions involving preparation of accounts. The general instructions specify the time given, that all questions are compulsory, and parts of questions should be together.
Important Accounts Paper - 2015 - Commerceseomiamia
Mia Mia is a real time local search engine that enables people to search for a search provider anywhere with ease and convenience. The institutes and coaching centres providing the best Commerce classes in Mumbai and nearby areas are listed on MiaMia. For details - visit: http://miamia.co.in/
This document provides instructions for a 3-hour exam consisting of multiple choice and long answer questions in Accountancy. It informs examinees that the paper contains 3 parts (A, B, C) and that they must attempt Part A (which is compulsory) and Part B. It does not provide Part C. The document then lists 18 multi-part questions in Part A assessing concepts in partnership firms and companies including capital accounts, debentures, shares, retirement/admission of partners, and dissolution.
1. This document contains a mock test paper for the Common Proficiency Test with 34 multiple choice questions covering topics in Fundamentals of Accounting. The questions test knowledge of accounting concepts like joint ventures, partnership, bills of exchange, depreciation, inventory valuation, and more.
2. For each question there are 4 answer options and the test taker must select the correct answer. The questions involve calculating amounts based on financial information provided, applying accounting concepts, or interpreting accounting entries/transactions.
3. The time allowed for the test is 4 hours and it carries a maximum of 200 marks. It has one section which is Fundamentals of Accounting and covers basic as well as complex accounting problems
1) The document provides information about 10 different partnership scenarios involving the admission of new partners. It includes balance sheets before admission, terms of admission, and instructions for adjusting accounts.
2) For each scenario, adjustments are made to various asset and liability accounts based on the admission terms. Profit and loss accounts are prepared to calculate gains or losses from revaluations. New capital accounts are opened for the incoming partners.
3) The responses provide the adjusted profit/loss figure, total balance sheet amount, and ending capital account balances for the original and new partners in each scenario.
2 ISSUE AND REDEMPTION OF DEBENTURES_HSSTIMES.pptxShanthini28
This document discusses debentures and bonds as methods for companies to raise long-term capital. It defines debentures as a written debt instrument issued by a company with a fixed interest rate. Bonds are similar but can have variable interest rates. There are various types of debentures such as secured/unsecured, redeemable/irredeemable, and convertible/non-convertible. The document also discusses the process of issuing debentures including types of issuances (e.g. at par/premium/discount) and accounting entries. It concludes by covering redemption of debentures which can occur as a lump sum payment, installment payments, purchase on the open market, or conversion to shares or
This document summarizes the key differences between dissolution of a partnership and dissolution of a partnership firm. Dissolution of a partnership refers to a change in the existing agreement between partners, while the business continues. Dissolution of a partnership firm refers to closing the business and ending the economic relationship between partners. Upon dissolution of a firm, the books must be closed, assets sold, liabilities paid, capital returned to partners, and any remaining amount divided according to profit sharing ratios.
This document provides a summary of questions and answers from the CPT June 2013 exam paper based on students' memories. It includes 45 multiple choice questions from the exam covering topics like accounting, partnership, joint venture, consignment, insurance, depreciation and more. For each question, 4 possible answer options are provided without disclosing the correct answer. The document is authored by Pace2race Institute and provides a helpful study guide for students preparing for the CPT exam.
This document contains 20 multiple choice and essay questions regarding the Assam High Secondary Exam for Accountancy. The questions cover a range of accounting topics including financial statements, ratio analysis, partnership accounts, and company accounts. Students are asked to define terms, calculate amounts, journalize transactions, and prepare financial statements. The questions require knowledge of concepts like income and expenditure accounts, capital accounts, asset revaluation, partnership dissolution, and debenture issuance.
This document provides information and examples about accounting for public companies and underwriting. It discusses concepts like underwriting liability, applications received, marked applications, outstanding shares, and liability calculations for different underwriters based on information provided in examples. It also discusses calculating share value based on dividend yield and return on capital employed. Other topics covered include acquisition accounting, consolidation of financial statements, treatment of pre-acquisition profits, minority interest, and revaluation of assets.
This document provides information and examples about accounting for public companies and underwriting. It discusses concepts like underwriting liability, applications received, marked applications, outstanding shares, and underwriter ratios and liabilities. Multiple examples are provided of calculating underwriter liability given information about shares issued, underwriting percentages, applications received, and marked applications.
A N N U I T Y Q U E S T I O N S F O R A P T I T U D E T E S T SDr. Trilok Kumar Jain
This document provides information and examples about accounting for public companies and underwriting. It discusses concepts like underwriting liability, applications received, marked applications, outstanding shares, and liability calculations for different underwriters based on information provided in examples. It also includes solutions to example questions about underwriting calculations.
This document contains an accountancy exam paper with 20 multiple choice and essay questions. It covers topics like accounting entries, financial statement analysis, partnership accounts, and company accounts. The questions require calculations, journal entries, explaining concepts and distinguishing between different accounting terms. It tests a student's understanding of key topics in the accountancy syllabus for Class 12.
the ppt is about the Journal entries made to record issue of debenture under companies act 1956. It covers issue of debenture as per different situations. Hope you people find it helpful. you are welcome for any query.
The document discusses an afterschool program for developing social entrepreneurs. It provides a free, comprehensive program for social and spiritual entrepreneurship open to all. It includes contact information for the program director and websites for more information.
Accountancy XII (Management) - Hissan 2078YEP Nepal
This document contains 22 questions related to accountancy for a grade 12 pre-board exam. The questions cover a range of topics including features of private companies, types of preference shares, parties interested in financial statements, limitations of ratio analysis, differences between cost and financial accounting, variable costs, labor cost control, allocation and apportionment of overhead, journal entries for share applications and allotments, entries for forfeiture and re-issue of shares, purchase of assets and liabilities, issue and redemption of debentures, preparation of trading account, profit and loss account, balance sheet, adjustment entries and worksheet, ratios, funds from operations and cash flow statements, economic order quantity, wage calculations, cost sheets, tender sheets, and
Pechstein Corporation issued 2,050 shares of $10 par value common .docxherbertwilson5999
Pechstein Corporation issued 2,050 shares of $10 par value common stock upon conversion of 1,060 shares of $50 par value preferred stock. The preferred stock was originally issued at $58 per share. The common stock is trading at $27 per share at the time of conversion.
Record the conversion of the preferred stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
On January 1, 2012 (the date of grant), Lutz Corporation issues 2,720 shares of restricted stock to its executives. The fair value of these shares is $127,500, and their par value is $10,200. The stock is forfeited if the executives do not complete 3 years of employment with the company.
Prepare the journal entry (if any) on January 1, 2012, and on December 31, 2012, assuming the service period is 3 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
1/1/12
12/31/12
Rockland Corporation earned net income of $717,128 in 2012 and had 171,000 shares of common stock outstanding throughout the year. Also outstanding all year was $868,000 of 10% bonds, which are convertible into 17,000 shares of common. Rockland’s tax rate is 36 percent.
Compute Rockland’s 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. $3.55.)
Diluted earnings per share
$
On January 1, 2012, when its $36 par value common stock was selling for $90 per share, Bartz Corp. issued $10,260,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation’s common stock. The debentures were issued for $10,875,600. The present value of the bond payments at the time of issuance was $9,003,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2013, the corporation’s $36 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2014, when the corporation’s $16 par value common stock was selling for $175 per share, holders of 20% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.
(a) Prepare the entry to record the original issuance of the convertible debentures. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(b) Prepare the entry to r.
Similar to Practice of debentures xii commerce accounts (20)
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1. [Type the document title]
ISSUE AND REDEMPTION OF DEBENTURE
1. C Ltd. Purchased machinery worth Rs. 200000 from E Ltd. On 1.1.13. Rs. 50,000 were paid immediately and the balance was
paid by issue of Rs. 1,60,000 12 % debentures in D Ltd. Pass the necessary journal entries.
2. X Ltd purchased assets ofY Ltd as under :
Plant and machinery :Rs. 80,00,000
Land and buildings : Rs. 72,00,000
The purchase consideration was Rs. 80,00,000. Rs. 20,00,000 were paid through bank and the remaining by issue of 6 %
debentures of Rs. 100 each at a premium of 20%.
Pass necessary journal entries.
3. Give journal entries in each of the following cases if the face value of a debenture is Rs. 100.
1. A debenture issued at Rs. 110 repayable at Rs. 100.
2. A debenture issued at Rs. 100 repayable at Rs. 105.
3. A debenture issued at Rs. 105 repayable at Rs. 105.
4. On 15-2-13 A Ltd., invited applications for issue of 100000 9 % debentures of Rs. 100 each at a discount of 6%, redeemable
at par after 3 years. The full amount was payable on application and the debentures were issued on 15-3-13 .pass journal entries
for the above transactions.
5. AB Ltd issued 5,00,000, 7% debentures ofRs. 50 each. Pass necessary journal entries in the books of the company for the
issue of debentures when debentures were :
1. Issued at par and redeemable at 8 % premium.
2. Issued at 4% premium redeemable at 5% premium.
3. Issued at 5% premium redeemable at par.
6. Pass necessary journal entries in the books of the company in following cases for redemption of 2000, 12 % deb entures of Rs.
10 each issued at par.
a. Debentures redeemed at par by conversion in to 12 % preference shares of Rs. 100 each.
b. Debentures redeemed at premium of 10 % by conversion in to equity shares at par.
c. Debentures redeemed at a premium of 10 % conversion in to equity shares at a premium of 25 %.
7. P ltd issued 4500 12 % debentures ofRs. 100 each at a discount of 6 % to be redeemed as follow.
1st year Nil
2nd year Nil
3rd year 3,00,000
4th year 1,50,000
8. On 31st March 2013 G Ltd had Rs. 8,00,000 debentures for redemption. The company had a balance of Rs. 3,40,000 in its
DRR account.Pass necessary journal entries for redemption of debentures.
9. On 31 st March 2013 M ltd had Rs. 10,00,000 9 % debentures due for redemption. The company had a balance of
Rs. 4,60,000 in its debentures redemption reserve account. Pass entries.
10. On 31 st March 2005 JanataLtd converted its Rs. 88,00,000, 6 % debentures in to equity shares of Rs. 20 each at a premium
of Rs. 2 per share.Pass necessary journal entries in the books of the company for redemption of debentures.
11. On 1-1-2013 X Ltd issued 500000 8 % debentures ofRs. 100 each, redeemable after 10 years.Debenture holders were given
the option to get their debentures redeemed at any time after 3 years at Rs. 105 per debentures.At the end of four years ,
debenture holders’ holding 40,000 debentures exercised their option and got their debentures redeemed. Record the necessary
journal entries for the issue and redemption of debentures in the books of the company.
12. On 1-2-2013 Kishan Ltd converted 9000, 8% Debentures of Rs. 100 each in to 8 % preference shares of Rs. 100 each issued
at discount of 10%. Pass necessary journal entries.
13. X Ltd issued Rs. 10,000 , 12 % debentures of Rs. Each payable Rs. 40 on application and Rs. 60 on allotment. The public
applied for 15,000 debentures.Applications of 9,000 debentures were accepted in full; applications of 2000 debentures were
alloted 1000 debentures and the remaining applications were rejected. All due money received on time. Journalize the
transactions.
2. [Type the document title]
14. Aashirvad Company Ltd purchased assetsofthe book value of Rs. 200000 from anothercompany and agreed to make the
payment of purchase consideration by issuing 2000 10% debentures ofRs. 100 each. Record the journal entries.
15. Ram Company Ltd purchased assets ofthe book value of Rs. 220000 from anothercompany and agreed to make the payment
of purchase consideration by issuing 2000 10% debentures of Rs. 100 each at a premium of 10 %. Record the journal entries.
16. Navrang Company Ltd purchased assets ofthe book value of Rs. 1,90,000 from another company and agreed to make the
payment of purchase consideration by issuing 2000 10% debentures ofRs. 100 each at a discount of 5%. Record the journal
entries.
17. Romi Ltd acqured assets ofRs. 20 Lakh and took over creditors of Rs. 2 lakh from K.K enterprise. Romi Ltd issued 8%
debentures of Rs. 100 each at par as a purchase consideration. Record necessary entries in the books of Romi Ltd.
18. A company took Loan of Rs. 10,00,000 from Bank of Baroda and issued 10 % debentures ofRs. 12,00,000 of Rs. 100 each as
a collateral security. Explain how will you deal with the issue of debentures in the books of the company.
19. A Ltd issued 2000, 10 % debentures of Rs. 100 each on January 1, 2013 at a discount of 10 % redeemable at a premium of 10
%.
Give necessary entries relating to the issue of debentures and debenture interest for the period ending December 31, 2013
assuming that interest was paid half yearly on June 30 and December 31 and tax deducted at source is 10 %. A ltd follow calen dar
year as accounting year.
20. X Ltd issued 5000 16% debentures of Rs. 100 each at a discount of 5% repayable after 5 years at a premium. You are
required to write off the loss on issue of debentures overthe period of five years.
QUESTIONS TAKEN FROM SAMPLE QUESTION PAPERS ON ISSUE AND REDEMPTION OF DEBENTUR ES
21. Alpha Ltd. has 5,000, 8 % debentures of Rs. 100 each due for redemption on March 31, 2012. Assume that debentures
redemption reserve has a balance of 1,90,000 on that date. Record the necessary entries at the time of redemption of debentures.
22. What journal entries should be made for the issue of debentures in the following cases :
a. X Limited issued 30,000, 12 % debentures ofRs. 100 each at par, redeemable at a premium of 5 %.
b. Y limited issued 50,000, 12 % debentures ofRs. 100 each at a premium of 5 %, redeemable at par. 3
23.Bansika limited issued 55,000, 12 % debentures of Rs. 100 each. Give journal entries in the following cases when;
a. The debentures were issued at a premium of 10 %.
b. The debentures were issued as a collateral securities to bank against a loan of 45,00,000.
c. The debentures were issued to a supplier of a machine costing 49,50,000 as his full and final payment. 3
24. Pass journal entries for redemptiom of the following cases :
a. A joint stockcompany issued 20,000, 10 % debentures ofRs. 100 each at a premium of 5 %. These debentures were to
be redemed at a premium of 10 % through the issue of shares at a discount of 5 %.
b. 1,000, 12 % debentures ofRs. 100 each issued as a discount of 5 % and redeemable at par after 5 years were converted
in to shares of Rs. 10 each issued at a premium of 25 % before maturity. 3
25. Pass necessary journal entries for redemption of debentures in the following case ;
a. 10,000, 12 % debentures of Rs. 50 each issued at par and 50 % of the redemption to be made in cash,and the balance to
be redeemed at a premium of 25 % through the issue of fresh debentures.
26. A company issued 5,000, 12 % debentures of100 each. Assuming that all the debentures issued are taken up and paid for,
pass journal entries in the books of the company in each of the following cases:
b. issued at a discount of 5 %, redeemable at a premium of 10 %.
c. issued at a premium of 5 %, redeemable at a premium of 10 %. 3
27. On 1st January, 2010, Rhythm Ltd. Issued 1,000, 10 % debentures of Rs. 500 each at par. Debentures are redeemable after 7
years. However the company gave an option to debenture holders to get their debentures converted into equity shares of Rs. 100
each at a premium of 25 per share anytime after the expiry of one year.
Shivansh holder of 200 debentures,informed on Jan. 1, 2012 that he wanted to exercise the option of conversion of debentures .
The company accepted his request and converted his debentures in to equity shares.Pass the necessary journal entries to record
the issue of debentures on Jan.1, 2010 and conversion of debentures on Jan. 1, 2012. 3
28. Pass necessary journal entries for the issue of debentures in the following cases :
a. Jain Limited issued 750, 12 % debentures of Rs. 100 each at a discount of 10 % redeemable at a premium of 5 %.
b. Sohan limited issued 800, 9 % debentures of Rs. 100 each at a premium of 20 per debenture,redeemable at a premium
of 10 per debenture. 3
29. .Pass necessary journal entries for the issue of debentures in the following cases :
a. Roopak Limited issued Rs. 20,000, 9 % debentures ofRs. 100 each at a discount of 5 % redeemable at a premium of 5
%.
b. Harish limited issued Rs. 20,000, 9 % debentures ofRs. 100 each at a premium of 5 %, redeemable at a premium of 5%.
3. [Type the document title]
c. Ankur limited issued Rs. 20,000, 9 % debentures ofRs. 100 each at par, redeemable at a premium of 5%. 3
30. Pass necessary journal entries for the issue of7 % debentures in the following cases :
a. 200 debentures of Rs. 150 each issued at a premium of 10 % redeemable at Rs. 200 each
b. 200 debentures of Rs. 200 each issued at a discount of 10 %, redeemable at par. 3
31.Tuteja construction Ltd. Had an outstanding balance of 1,26,00,000, 9 % debentures of Rs. 200 each redeemable at a premium
of 3 %. According to the terms of redemption, the company redeemed 50 % of the above debentures by converting them in to
shares of Rs. 10 each at a discount of 10 %. Record the entries for the redemption of debentures in the books of Tuteja
Construction Ltd. 3
32. Pass necessary journal entries for the issue of debentures in the following cases :
d. Rs. 40,000, 15% debentures ofRs. 100 each issued at par redeemable at a premium of 10 %.
e. Rs. 90,000, 15 % debentures of Rs. 100 each issued at a discount of 5 %, redeemable at a premium of 10 %. 3
33. Tanya Construction Ltd. Had an outstanding balance of 19,00,000, 14% debentures of Rs. 100 each redeemable at par.
According to the terms of redemption, the company redeemed 50 % of the above debentures by converting them in to shares of
Rs. 10 each at a premium of 25 %. Record the entries for the redemption of debentures in the books of company. 3
34.Pass the necessary journal entries for the issue of debentures in the following cases :
a. Rs. 40,000, 15% debentures ofRs. 100 each issued at a discount of 10 % redeemable at par.
b. Rs. 80,000, 15 % debentures of Rs. 100 each issued at a premium of 10 %, redeemable at a premium of 10 %. 3
35. Tara Construction Ltd. Had an outstanding balance of 75,00,000, 14% debentures of Rs. 150 each redeemable at par.
According to the terms of redemption, the company redeemed 1/4thof the above debentures by converting themin to shares of Rs.
20 each at a premium of Rs.5per share. Record the entries for the redemption of debentures in the books of Tara Construction
Ltd. 3
36. Pass necessary journal entries for the issue of 1000, 7 % debentures ofRs. 100 each in the following cases :
a. issued at a discount of 5 %, redeemable at par
b. issued at a premium of 5 %, redeemable at a premium of 10 %. 3
37. Tammana Construction Ltd. Had an outstanding balance of 5,00,000, 7% debentures of Rs. 100 each redeemable at a
premium of 10 %. According to the terms of redemption, the company redeemed 30 % of the above debentures by converting
them in to shares of Rs. 50 each at a premium of 20 %. Record the entries for the redemption of debentures in the books of
Tammana Construction Ltd. 3
38. Pass the necessary journal entries in the following cases.
a. Sunrise Ltd. Converted 500, 9 % debentures of Rs. 100 each issued at a discount of 10 % into equity
shares of Rs. 100 each issued at a premium of 25 %.
b. Britannia Ltd redeemed 3,000, 12 % debentures of Rs. 100 each which were issued at a discount of
Rs. 10 per debenture by converting them in to equity shares of Rs. 100 each, 90 paid.
Q.6 On 1st July 2007. A Ltd gave notice of their intention to redeem their outstanding Rs. 400,000 8%
Debentures on 1st January, 2008 @ rs. 102 each and offered the holders the following options-
(a) To subscibe for (i) 6% cumulative preference shares of Rs. 20 each at Rs. 22.50 per share, accepted
by debenture holders of Rs. 1,71,000 or (ii) 12% debentures were issued @96% accepted by the holders
of Rs. 1,44,000 Debentures.
(b) Remaining debentures to be redeemed for cash if neither of the option under (a) was accepted. Pass
necessary journal entries.
Q.7. Virani Industries Ltd. issued 1, 00,000, 10% Debentures of Rs. 10 each at a discount of 9% on April 1st,
2001 redeemable as follows:
31st March 2003 - 20,000 Debentures
31st March 2004 - 30,000 Debentures
31st March 2005 - 20,000 Debentures
31st March 2006 - Remaining Debentures
Calculate the amount of discount to be written off each year and prepare discount on issue of debentures
account.
Q.10 The following balance appeared in the books of Z Ltd. on January 1, 2004.
12% Debentures A/C Rs. 1, 50,000
Debenture Redemption Fund Rs. 1, 25,000
Debenture Redemption Fund Investment Rs. 1, 25,000
(Represented by Rs. 1, 47,500, 3% Govt. Securities)
4. [Type the document title]
The annual installment added to the fund is Rs. 20,575. On December 31, 2004, the bank balance after
the receipt of interest on investment was Rs. 39,100. On that date all the investment were sold at 83%
and the debentures were duly redeemed. Show the necessary ledger accounts for the year 2004.
Q.11 On 01-04-1999, A Ltd., issued 2000, 7% debentures of Rs. 100 each at a discount of 10% redeemable at
par after 4 years by converting them into equity shares of Rs. 100 each issued at a premium of 25%.
Pass journal entries in the following cases:
(i) If debentures are redeemed on maturity.
(ii) If debentures are redeemed before maturity.
Q.12 Pass journal entries for the following at the time of issue of debentures:
(a) B Ltd. issues 30,000, 12% Debentures of Rs. 100 each at a discount of 5 % to be repaid at par at the
end of 5 years.
(b) E Ltd. issues Rs. 60,000, 12% Debentures of Rs. 100 each at a discount of 5 % repayable at a
premium of 10% at the end of 5 years.
(c) F Ltd. issues Rs. 70,000, 12% Debentures of Rs. 100 each at a premium of 5 % redeemable at 110%.
Q.1 Gupta Ltd has incurred a loss of Rs. 8,00,000 before payment of interest on debentures. The directors of
the company are of the opinion that interest on debentures is payable only when company earn profit. Do you
agree?
Q.2 As per latest guidelines governing the servicing of debentures a company is required to create on special
account. Name that account.
Q.3 Name the method of redemption of debentures in which there is no requirement of creating Debenture
Redemption Reserve.
Q.4 What is the nature of receipt of premium on issue of shares?
Q.5 Can a company issue shares at a premium in the absence of any express authority in its articles?
Q.6 What is the maximum rate of interest which the board of directors of a company can normally pay on calls-
in-advance if the articles are silent on the matter of such interest?
Q.7 State with reason whether a company can issue its shares at a discount in its Initial Public Offer (IPO).
Q.8 Why securities premium money cannot be used for payment of cash dividend among shareholders?
Q.9 Krishna Ltd. With paid-up share capital of Rs. 60,00,000 has a balance of Rs. 15,00,000 in securities
premium account. The company management does not want to carry over this balance. You are required to
suggest the method for utilizing this premium money that would achieve the objectives of the management and
maximize the return to shareholders.
Q.10 Distinguish between a share and a Debenture.
Q.11 Can share premium be utilised for the purchase of fixed assets?
Q.12 State in brief, the SEBI guidelines regarding Debenture Redemption Reserve (DRR).
Q.13 Which companies are exempted from the obligation of creating DRR by SEBI?
Q.14 What is the restriction on reissue of forfeited shares at discount?