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Standard XII
Economics
Question

FCCB's are very similar to the _________ debentures issued in India.
  1. Secured
  2. First
  3. Unsecured
  4. Convertible

A
Secured
B
Convertible
C
Unsecured
D
First
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Solution
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Foreign currency convertible bonds are equity linked debt securities that are to be converted into equity or depository receipts after a specific period. Holder of FCCB's has the option of converting them into equity shares at a predetermined price or exchange rate. Hence, FCCB's are very similar to the convertible debentures issued in India.

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FCCB's are very similar to the _________ debentures issued in India.
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Q2

X.Ltd. issued 15,000, 10% debentures of Rs 100 each. Give journal entries and the Balance Sheet in each of the following cases:

(i) The debentures are issued at a premium of 10%;

(ii) The debentures are issued at a discount of 5%;

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When debentures are issued at a discount & redeemed at a premium, we route discount on issue of debentures a/c through on issue of debentures a/c.
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Q5

Pass journal entries in the following cases:
(a) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 5% redeemable at par.
(b) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 10% redeemable at par.
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(d) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium.
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