Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing - Accountancy MCQ CUET Accountancy 2023 11 June Shift 3 2026 | ExamTest.live

easyMCQCUET Accountancy 2023 11 June Shift 32026Accountancy

1 mark

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45, 00, 000 . At the time of issue of Debenture they also issued equity Share of Rs. 30, 00, 000 at 20% premium.Debentures that will be redeemed only at the time of winding up of the company are known as:

Solution & Step-by-step Explanation

Debentures that carry no specific maturity date during the active lifetime of a company and are repayable only upon liquidation/winding up are called Irredeemable Debentures (or perpetual debentures).

Try it yourself before checking the explanation above.

Rancho Ltd. was running successfully since last 8 years. Post covid there were some financial problems faced by firm, like many industries were facing. Due to their past reputation they could manage the permission from SEBI for issuing of shares on 1 Aug, 2022. They also decided to issue 12% Debentures of Rs. 100 each at 10% Discount and were to be redeemed at 25% premium in such a way that they could arrange fund of Rs. 45, 00, 000 . At the time of issue of Debenture they also issued equity Share of Rs. 30, 00, 000 at 20% premium.Debentures that will be redeemed only at the time of winding up of the company are known as:

Redeemable Debentures

Irredeemable Debentures

Non-Convertible Debentures

Zero Coupon Rate Debentures

Practice with timed mock tests and track your performance across Accountancy.