Issue and Redemption of Debentures: Class 12 Accountancy (UP Board) important questions and practice
Issue and Redemption of Debentures is chapter 6 of 10 in UP Board Class 12 Accountancy. Below are the topics the paper draws from, the question types that come up again and again, and a free practice test on this chapter alone.
Topics in this chapter
- Meaning and types of debentures; debentures versus shares
- Issue of debentures at par, premium and discount
- Issue of debentures as collateral security and for consideration other than cash
- Terms of issue and redemption (six cases)
- Writing off discount or loss on issue of debentures
- Interest on debentures and TDS
What examiners usually ask
- Pass journal entries for the issue of 10 percent debentures at a discount of 5 percent redeemable at a premium of 10 percent
- A company purchased assets of Rs 5,40,000 and took over liabilities of Rs 40,000 and issued 9 percent debentures at a premium of 25 percent as payment; pass entries
- How is loss on issue of debentures written off? Pass the necessary entries
Exam tip
Memorise the six issue-redemption cases and note that 'Loss on Issue of Debentures' is debited at the time of issue for the redemption premium; redemption methods were removed in the rationalised CBSE syllabus, so focus on issue and interest entries.
Issue and Redemption of Debentures on other boards and exams
Frequently asked questions
What are the important questions from Issue and Redemption of Debentures for UP Board Class 12?
The question types listed above repeat most often in UP Board Class 12 Accountancy papers for this chapter. Practise them with the chapter test and then attempt them inside a full previous-year paper under time.
Is Issue and Redemption of Debentures in the UP Board Class 12 Accountancy syllabus?
Yes. Issue and Redemption of Debentures is part of the current UP Board Class 12 Accountancy syllabus, as listed on this site from the prescribed textbook.
Can I practise Issue and Redemption of Debentures MCQs in Hindi?
Yes. The chapter test and explanations are available in Hindi and English, with an AI doubt solver for any question.