Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting – II (112): - Question Paper

9.5% Government loan at par
12% Government loan at 96%
18% Debentures at Rs.90 every
Preference shares at Rs.105 every.
On April 01, 2006, the company redeemed the debentures at a premium of 10%.
The amount transferred to general reserve out of debenture redemption fund account was
(a)
Rs.1,14,830
(b)
Rs.1,04,830
(c)
Rs.1,10,600
(d)
Rs.1,12,430
(e)
Rs.1,02,430.
(2 marks)
< ans >
37.
Tax deducted at source on the payments made by a company, appears in theBalance Sheet on the
(a)
Liabilities side under current liabilities
(b)
Liabilities side under provisions
(c)
Assets side under current assets
(d)
Assets side under loans and advances
(e)
Assets side under miscellaneous expenditure.
(1 mark)
< ans >
38.
Lakhani Ltd. issued 800 12% Debentures of Rs.100 every on July 1, 2005. Interest ispayable on September 30 and March 31, every year. The company purchased 400 of its own debentures for an amount of Rs.38,400 on October 01, 2006. The companycancelled all the above 400 debentures on October 1, 2006. The journal entry passed onthe cancellation of 400 debentures is
Rs.
Rs.
(a)
Cash account
Dr.
38,400
To Own Debentures account
38,400
(b)
12% Debentures account
Dr.
40,000
To Own Debentures account
40,000
(c)
12% Debentures Account
Dr.
40,000
To Own Debentures account
38,400
To Capital Reserve account
1,600
(d)
12% Debentures account
Dr.
40,000
To Own Debentures account
38,400
To Loss on cancellation of debentures
1,600
(e)
12% Debentures account
Dr.
38,400
To Own Debentures account
38,400
(2 marks)
< ans >
39.
The profit or loss on own debentures is computed at the time of
(a)
problem of debentures
(b)
Creation of sinking fund for redemption
(c)
Purchase of own debentures
(d)
Cancellation of own debentures
(e)
Payment of interest in following interval.
(1 mark)
< ans >
40.
10% Debentures mean that
(a)
10% of the outstanding amount is redeemed every year
(b)
The debentures are issued @ 10% premium
(c)
The debentures are issued @ 10% discount
(d)
10% of the outstanding amount shall not be redeemed
(e)
The debentures carry coupon of 10%.
(1 mark)
< ans >
41.
Debentures can be issued
(a)
In lieu of equity shares
(b)
In lieu of capitalisation of profits
(c)
In lieu of dividends
(d)
In lieu of preference shares
(e)

Earning:   Approval pending.