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Question Practice

When a company issues debentures for assets valued at Rs. 1,00,000 at par, what is the entry?

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MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Issue and Redemption of Debentures
Question Bank

When a company issues debentur...

Single Answer MCQ
Q-00082554

When a company issues debentures for assets valued at Rs. 1,00,000 at par, what is the entry?

1

Sundry Assets A/c Dr 1,00,000 To Debentures A/c 1,00,000

2

Debentures A/c Dr 1,00,000 To Cash A/c 1,00,000

3

Vendors A/c Dr 1,00,000 To Debentures A/c 1,00,000

4

Debentures A/c Dr 1,00,000 To Sundry Assets A/c 1,00,000

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Q1.

What is the difference between a debenture and a share?

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Q2.

Explain the concept of debentures issued as collateral securities.

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Q3.

Describe the guidelines provided by SEBI for creating Debenture Redemption Reserve.

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Q4.

Can a company purchase its own debentures in the open market? Explain.

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