2.3.3 - Issue of Debentures
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Practice Questions
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What is a debenture?
💡 Hint: Think of it as a way a company borrows money.
Name one type of debenture.
💡 Hint: Consider what a shareholder can do with it later.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is a debenture?
💡 Hint: Think about what it means to acknowledge a debt.
True or False: Secured debentures have no collateral backing them.
💡 Hint: Consider what security means in financial terms.
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Challenge Problems
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A company issued 100,000 10% debentures at a premium of 10%. What are the accounting entries for the issuance?
💡 Hint: Consider how the premium affects cash received.
If a company redeems ₹1,00,000 of 12% debentures at a premium of 5%, what would be the total cash outflow?
💡 Hint: Add the premium to the face value for full repayment.
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