Worksheets › Class 12 › Issue and Redemption of Debentures
Class 12 Issue and Redemption of Debentures worksheet
CBSE Accountancy. Kinds of debentures, issue at par, premium and discount with terms of redemption, loss on issue, debentures to vendors, interest with TDS and writing off the loss. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
A debentureholder is a(n):
- partner
- employee
- owner of the company
- creditor of the company
Answer
(d) creditor of the company
- 2.
What are “irredeemable (perpetual) debentures”?
- debentures repaid only on winding up of the company
- debentures given as extra security for a loan, in addition to the main security
- debentures transferable by mere delivery
- debentures with no stated interest, issued at a deep discount
Answer
(a) debentures repaid only on winding up of the company
- 3.
Which of these is true of debentures (and not of shares)?
- the return varies with profit
- the return is paid only out of profits
- holders are owners of the company
- they are repaid after a fixed period
Answer
(d) they are repaid after a fixed period
Section B · short answer
- 4.
What is a debenture?
Answer
A written acknowledgement of a debt by a company, under its seal, promising interest and repayment on stated terms.
- 5.
Explain each kind of debenture: (a) zero coupon rate debentures (b) debentures as collateral security
Answer
(a) debentures with no stated interest, issued at a deep discount (b) debentures given as extra security for a loan, in addition to the main security
Section C · long answer
- 6.
Explain the different types of debentures.
Answer
By security: secured and unsecured; by tenure: redeemable and irredeemable; by convertibility: convertible and non-convertible; by coupon: specific rate and zero coupon; by registration: registered and bearer.
Fresh sheets for your child
In the app, every Issue and Redemption of Debentures sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
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