Read the following information and answer the questions Q41-Q45:
On 1st April 2013, a company made a

Q: What is the correct answer for CUET UG Accountancy Q41?

The correct answer is c. When money is received from applicants for debentures, the Bank Account is debited as it represents an increase in the company's cash balance. The corresponding credit entry is to 'Debentures Application & Allotment A/c'.

Q: Read the following information and answer the questions Q41-Q45: On 1st April 2013, a company made an issue of 10,000, 9% debentures of ₹100 each at 92 per debenture. The terms of issue provided for…

The correct answer is c. When money is received from applicants for debentures, the Bank Account is debited as it represents an increase in the company's cash balance. The corresponding credit entry is to 'Debentures Application & Allotment A/c'.

Q: What are the options for this CUET UG Accountancy question?

A. Debenture Application A/c · B. Discount on Issue of Debenture A/c · C. Bank A/c · D. Debentures Application & Allotment A/c

Question

Read the following information and answer the questions Q41-Q45:
On 1st April 2013, a company made an issue of 10,000, 9% debentures of ₹100 each at 92 per debenture. The terms of issue provided for redemption of 2,000 debentures every year starting from 31st March 2016, either by conversion into equity shares of ₹20 each or by drawn of lot a par at companies option. On 31st March 2016 Company's redeemed 2,000, 9% debentures by converting them into equity shares of ₹20 each.

Q44. Which A/c will be debited at the time when amount is received on issue of debentures?

FirstInTest · Accepted Answer

When money is received from applicants for debentures, the Bank Account is debited as it represents an increase in the company's cash balance. The corresponding credit entry is to 'Debentures Application & Allotment A/c'.

Answer

Debenture Application A/c

Answer

Discount on Issue of Debenture A/c

Answer

Bank A/c

Answer

Debentures Application & Allotment A/c

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