Practice Types of Debentures - 2.3.2 | 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

Define debenture.

πŸ’‘ Hint: Think about what a company uses to borrow money.

Question 2

Easy

What is a secured debenture?

πŸ’‘ Hint: What gives an investor a safety net?

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 of stock
  • A loan certificate
  • An asset

πŸ’‘ Hint: Focus on what a company uses to secure funds.

Question 2

Convertible debentures can be converted into what?

  • Liabilities
  • Equity shares
  • Unsecured loans

πŸ’‘ Hint: Think about how investors might benefit later.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company issued 50,000 non-convertible debentures at a face value of β‚Ή100 each at a 10% premium. How much total money did the company raise?

πŸ’‘ Hint: Calculate the total by considering each debenture's issue price.

Question 2

When redeeming a β‚Ή1,00,000 debenture which pays 5% interest at a premium of 5%, outline the journal entries needed for the redemption.

πŸ’‘ Hint: Remember to reflect the premium in your entries.

Challenge and get performance evaluation