Practice Issue of Debentures - 2.3.3 | Chapter 2: Joint Stock Company Accounts | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is a debenture?

πŸ’‘ Hint: Think of it as a way a company borrows money.

Question 2

Easy

Name one type of debenture.

πŸ’‘ Hint: Consider what a shareholder can do with it later.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is a debenture?

  • A share in equity
  • A loan certificate
  • A type of bond
  • None of the above

πŸ’‘ Hint: Think about what it means to acknowledge a debt.

Question 2

True or False: Secured debentures have no collateral backing them.

  • True
  • False

πŸ’‘ Hint: Consider what security means in financial terms.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company issued 100,000 10% debentures at a premium of 10%. What are the accounting entries for the issuance?

πŸ’‘ Hint: Consider how the premium affects cash received.

Question 2

If a company redeems β‚Ή1,00,000 of 12% debentures at a premium of 5%, what would be the total cash outflow?

πŸ’‘ Hint: Add the premium to the face value for full repayment.

Challenge and get performance evaluation