Adda247 Commerce Class 12
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What is the initial accounting entry for the purchase of assets when a company issues debentures for consideration other than cash?
Anonymous Quiz
14%
Cash A/c Dr. To Vendorโ€™s A/c
53%
Assets A/c Dr. To Vendorโ€™s A/c
20%
Vendorโ€™s A/c Dr. To Assets A/c
13%
Debentures A/c Dr. To Assets A/c
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โค1
When debentures are issued at a premium, which additional account is credited?
Anonymous Quiz
4%
Cash A/c
27%
Discount on Issue of Debentures A/c
67%
Securities Premium Reserve A/c
2%
Goodwill A/c
How is the difference treated when the purchase consideration is greater than the value of the net assets acquired?
Anonymous Quiz
40%
As a capital profit
23%
As revenue profit
31%
As a capital loss
7%
As a liability
โค1
A company issued debentures of โ‚น1,00,000, 9% debentures of โ‚น100 each at par but repayable at a premium of 5%. What amount will be debited to Loss on Issue of Debentures Account?
Anonymous Quiz
8%
โ‚น1,00,000
36%
โ‚น1,05,000
47%
โ‚น5,000
8%
โ‚น95,000
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โค2
What happens when the value of the net assets acquired is higher than the purchase consideration?
Anonymous Quiz
22%
It is treated as a capital loss
70%
It is treated as a capital profit
2%
It is ignored in the books
6%
It is treated as a liability
โค1
What additional account is affected with the difference between issue price and redeem price when debentures are issued at par but redeemable at a premium?
Anonymous Quiz
23%
Securities Premium Reserve A/c
33%
Discount on Issue of Debentures A/c
4%
Debentures A/c
41%
Loss on Issue of Debentures A/c
What is the accounting treatment for the redemption of debentures when amount is repaid for debentures issued at a premium and redeemable at a premium?
Anonymous Quiz
15%
Debentureholders A/c Dr. To Bank A/c
16%
Bank A/c Dr. To Debentures A/c
41%
Premium on Redemption of Debentures A/c Dr. To Bank A/c
28%
Loss on Issue of Debentures A/c Dr. To Bank A/c
AB Ltd. purchased assets worth โ‚น6,80,000 and took over liabilities of โ‚น80,000. It was agreed to pay the purchase price of โ‚น6,40,000, of which โ‚น2,00,000 was to be paid in cash and rest through issue of debentures of face value โ‚น100 at 10% premium. Calculate the number of debentures issued.
Anonymous Quiz
43%
4,000
32%
4,500
21%
3,800
4%
4,200
โค2
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