Skip to main content
Super TutorResources
Chapter 8 of 10
QuestionsNotesFlashcardsSummaryFormulasQuizConceptsSyllabusPlan
Practice Quiz

Joint Stock Accounts : Issue of Debentures

ICSE · Class 12 · Accountancy

Practice quiz for Joint Stock Accounts : Issue of Debentures — ICSE Class 12 Accountancy. MCQs and questions with answers to test your preparation.

45 questions37 flashcards5 concepts

Interactive on Super Tutor

Studying Joint Stock Accounts : Issue of Debentures? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for practice quiz and more.

Try Super Tutor — Free

1,000+ Class 12 students started this chapter today

An illustration showing a company issuing a debenture certificate to an investor, highlighting it as an acknowledgement of debt, with key terms like 'interest rate', 'repayment period', and 'company s
Super Tutor

Super Tutor has 9+ illustrations like this for Joint Stock Accounts : Issue of Debentures alone — flashcards, concept maps, and step-by-step visuals.

See them all

Quick Quiz: Joint Stock Accounts : Issue of Debentures

0/4

Tap an answer to check it instantly. No sign-up needed for these 4.

1

A debenture is issued by a company under its _______ and acknowledges its debt to the holder.

2

Debentureholders are considered as:

3

Which of the following types of debentures is transferable by mere delivery without any transfer deed?

4

The specific rate of interest mentioned on a debenture is called:

45 Questions·
multiple choice

Sample Questions

1multiple choice
1 marks

When debentures are issued at par and redeemable at par, the Securities Premium Reserve Account is:

Show answer

Neither debited nor credited

Step 1: When debentures are issued 'at par', the issue price equals the face value (e.g., ₹100 issued for ₹100). Step 2: Securities Premium Reserve is only created when debentures are issued at a premium (i.e., above face value). Step 3: Since there is no premium involved in this case (issued at par), there is no need to credit Securities Premium Reserve. Step 4: Similarly, there is no loss or discount either, so no debit arises. Step 5: The journal entry simply involves Bank A/c Dr. to Debentures A/c. Therefore, Securities Premium Reserve is neither debited nor credited.

2multiple choice
1 marks

When debentures are issued at a premium, the premium amount is credited to:

Show answer

Securities Premium Reserve Account

Step 1: When debentures are issued at a price higher than face value, the extra amount is called 'premium on issue'. Step 2: This premium is a capital profit (not earned from regular business operations). Step 3: Capital profits are NOT transferred to Profit and Loss Account. Step 4: As per accounting rules, this premium must be credited to 'Securities Premium Reserve Account'. Step 5: Capital Reserve Account is used for other capital gains (like profit on revaluation), not for issue premium. Hence, the correct answer is 'Securities Premium Reserve Account'.

3multiple choice
1 marks

Discount on Issue of Debentures Account is a:

Show answer

Capital loss

Step 1: When debentures are issued at a price below face value (at discount), the company receives less money than it will have to repay. Step 2: This shortfall is a financial loss for the company. Step 3: Since this loss arises from a financial/funding transaction (not regular business operations), it is classified as a 'Capital Loss'. Step 4: Revenue losses arise from day-to-day business operations. Step 5: Capital profits arise from capital transactions like selling assets at a gain. Since discount on issue is a capital transaction loss, the correct classification is 'Capital Loss'.

4multiple choice
1 marks

When debentures are issued at par but redeemable at a premium of 5%, the journal entry at the time of allotment will include a debit to:

Show answer

Loss on Issue of Debentures A/c

Step 1: When debentures are issued at par (₹100) but redeemable at premium (₹105), the company will pay ₹5 more at redemption than it received at issue. Step 2: This ₹5 extra payment is a known future loss, which must be recorded at the time of allotment. Step 3: This future loss is debited to 'Loss on Issue of Debentures A/c' (a capital loss). Step 4: Simultaneously, 'Premium on Redemption of Debentures A/c' is credited (as a liability). Step 5: Securities Premium Reserve is credited only when issued at premium; Discount on Issue is debited only when issued at discount. Hence, 'Loss on Issue

+41 more questions available

Practice All

Frequently Asked Questions

What are the important topics in Joint Stock Accounts : Issue of Debentures for ICSE Class 12 Accountancy?
Key topics in Joint Stock Accounts : Issue of Debentures include Classification of Debentures - Comprehensive Overview, Complete Debenture Accounting Concept Map, Debentures: Comprehensive Classification. These are the concepts ICSE Class 12 examiners draw on most — study them first, then practise related questions.
How to score full marks in Joint Stock Accounts : Issue of Debentures — ICSE Class 12 Accountancy?
Understand the core concepts first, then work through the 45 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Joint Stock Accounts : Issue of Debentures

All 10 chapters — ICSE Class 12 Accountancy Practice Quiz

For serious students

Get the full Joint Stock Accounts : Issue of Debentures chapter — for free.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for ICSE Class 12 Accountancy.

Try Super Tutor Free
Try the full chapter — Free