1. Aaradhya Ltd. had a debt equity ratio of 25:
State which of the following transaction will not affect the Debt Equity Ratio:
(1) Purchase of Rs.15,00,000 machinery by
taking bank loan of Rs.12,00,000
(2) Rs.2,00,000 paid to creditors
(3) Conversion of Rs.1,00,000 debentures into
Equity shares of Rs.100 each
(4) Sale of furniture (book value of Rs.5,00,000) for Rs.5,50,000		 Ans D

2. Match List - I with List - II.

List - I List - II
(A) The Accounting basis for Cash Flow Statement is (I)Investment in shares
(B) Dividend paid on
Equity and Preference
capital comes under		 (II) Cash Basis
(C) It can not be considered as cash
and cash equivalents		 (III) Treasury bills
(D) It can be classified as cash and cash equivalents (IV) Cash outflow from
Financing Activities

Choose the correct answer from the options
given below:
(1)(A)-(IV), (B)-(I), (C)-(II), (D)-(III)
(2) (A)-(II), (B)-(IV), (C)-(I), (D)-(III)
(3) (A)-(III), (B)-(II), (C)-(I), (D)-(IV)
(4) (A)-(II), (B)-(1), (C)-(IV), (D)-(III)

Ans B

3. The common fields used in a relationship between tables are called :
(1)Table fields
(2) Joint fields
(3)Main fields

(4) Key fields

Ans D
4. According to Indian Partnership Act, 1932,
when the firm is dissolved, cash received on sale of assets are applied in following order:
(A) Paying to each partner proportionately what is due to him/her on account of capital
(B)In paying the secured debts of the firm to the third parties
(C) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital
(D) The residue, if any shall be divided among
the partner's in their profit sharing ratio
(E) In paying unsecured debt of firm to third
parties
Choose the correct answer from the options
given below:
(1) (C), (B), (D), (A), (E)
(2) (B), (E), (C), (A), (D)
(3) (A), (B), (C), (D), (E)
(4)(D), (C), (B), (A), (E)		 Ans B 
5. Amount received from the sale of furniture for ₹7000 (Book value ₹10,000). The amount to be shown in receipts and payments account will be:
(1)Rs10,000 on the receipts side
(2)Rs7000 on the receipts side.
(3)Rs3000 on the payment side
(4)Rs3000 on the receipts side		 Ans B
6. The key combination which collapses the ribbon is:
(1) [Ctrl]+[F3]
(2) [Ctrl]+[F1]
(3) [Ctrl]+[F7]
(4)[Ctrl]+[F5]		 Ans B

7. If there appears a Tournament Fund, then the expenses incurred on Tournament activities will be shown :

(1) on the debit side of Income and Expenditure Account
(2) on the credit side of Income and Expenditure Account
(3) by way of adding to the Tournament Fund
(4) by way of subtracting/deducting from Tournament Fund

Ans D
8. Lisa, Monika and Nisha are partners in a firm sharing profits and losses in the ratio of 2:2:1. Their capital A/c stood as ₹50,000, ₹50,000 and ₹25,000 respectively. Monika died and balance in the reserve on that date was ₹15,000. If goodwill of the firm is ₹30,000 and profit on revaluation ₹7,050. What amount will be transferred to Monika's Executors Account?
(1) ₹50,820
(2)₹70,820
(3) ₹S8,820
(4)₹60,820		 Ans B
9. The need of codification is:
(1) To secure the account, reports etc.
(2)Easy to process data, keeping proper records
(3) The encryption of data
(4)The generation of mnemonic code		 Ans B 

10. Match List I with List - II.

List I List II
(A) Over Subscription (1)Minimum amount that must be raised by issue of shares
(B) Minimum subscription (II) Application received is more than shares issued
(C) Under Subscription (III) Allotment of shares without issue of prospectus

(D) Private Placement

 (IV) Application received is less than shares issued

Choose the correct answer from the options
given below:

(1) (A) -(II), (B)-(IV), (C)-(III), (D)-(I)
(2) (A)-(II), (B)-(I), (C)-(IV), (D)-(III)
(3) (A)-(I), (B)-(II), (C)-(IV), (D)-(III)
(4) (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

Ans B 

11. Current liabilities include:
(A) Trade receivables
(B)Unclaimed dividend
(C) Interest accrued but not due on loan
(D) Acceptances.
(E) 12% debentures redeemable after four years
Choose the correct answer from the options given below :
(1) (A), (B) and (C) only
(2) (B), (C) and (D) only
(3) (A), (C) and (D) only
(4) (A), (B) and (D) only

Ans B 

12. Pick the odd one out while Calculating Cash Flow from Financing Activities:
(1)Issue of Shares
(2) Repayment of Bank Loan
(3)Redemption of Debentures
(4)Rent received

Ans D 

13. Calculate and state the nature of activity under cash flow statement :
Acquired Machinery for ₹5,00,000 paying 50%
by cheque and executing a bond for the balance payable :
(1) Inflow operating activity ₹ 2,50,000
(2) Outflow Investing activity ₹(5,00,000)
(3) Inflow Investing activity ₹(5,00,000)
(4) Outflow Investing activity ₹(2,50,000)

Ans D

14. Legend can be repositioned on the chart:
(1)anywhere
(2) on the corner only
(3)on the right side only
(4)on the bottom of X-axis

Ans A

15. While calculating Goodwill under super profit method, the sequence followed is :
(A) Calculation of Super profit
(B) Calculation of Capital Employed
(C) Calculation of Normal profit

(D) Calculation of Average profit
(E) Calculation of Goodwill
Choose the correct answer from the options
given below:
(1) (D), (C), (A), (B), (E)
(2) (D), (B), (C), (A), (E)
(3) (D), (A), (C), (B), (E)
(4) (D), (C), (B), (A), (E)

Ans A

16. The steps in the Process of Preparing Profit and Loss Appropriation account are :
(A) Transfer the net profit to the credit side of P & L Appropriation A/c
(B) Divide the Profit among partners in the
Profit Sharing ratio
(C) Ascertain net profit after providing for all
charges
(D) Debit the P & L Appropriation A/c with all
appropriations like partners salary etc.
(E) Credit the P & L Appropriation A/c with
interest on drawing and deficiency on account of partner's guarantee of earnings to the firm.

Choose the correct answer from the options
given below:
(1) (A), (B), (C), (D), (E)
(2) (C), (A), (D), (E), (B)
(3) (B), (C), (E), (A), (D)
(4) (B), (C), (D), (A), (E)

Ans B 

17. Debentures issued for consideration other than cash includes, debentures:
(A) Issued to bank as additional security
(B) Issued to vendor
(C) Issued to Public
(D) Issued to creditor
(E)Issued for cash
Choose the correct answer from the options
given below:
(1) (C), (B), (A) and (E) only
(2) (A), (B) and (D) only
(3) (A), (D) and (C) only
(4) (B), (D) and (E) only

Ans B

18. AB&Co. purchased assets worth ₹28,80,000 from vendor. It issued debentures of 1₹00 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendor is:
(1) 30,000
(2) 28,800
(3) 32,000
(4) 27,693

Ans A

19. Find out cost of medicine consumed during
2020-21.
Payment to creditors of medicines Creditors for
medicines purchased ₹3,70,000
On 1.04.2020                              ₹25,000
On 31.03.2021                            ₹ 17,000
Stock of Medicines :
On 1.04.2020                              ₹62,000
On 31.03.2021                            ₹54,000
Advance to suppliers :
On 1.04.2020                              ₹11,000
On 31.03.2021                            ₹18,000

(1)₹3,63,000
(2)₹2,63,000
(3)₹3,36,000
(4)₹2,36,000

Ans A

20. On Dissolution of partnership firm out of total debtors of ₹2,50,000, ₹10,000 became bad and the rest realised 70%. In the given case Bank A/c will be debited by:
(1) ₹1,75,000

(2) ₹1,08,000
(3) ₹1,62,000

(4) ₹1,68,000

Ans D

21. Partnership deed should be drafted and prepared as per:
(1)Provision of Partnership Act
(2) Companies Act
(3) Registrar of Firms
(4)Provisions of the Stamp Act

Ans A

22. Match List I with List - II.

List - I List - II
(A) Authorised Capital (I)A portion of uncalled share capital will be called at the time of winding up
(B) Reserve Capital (II) Maximum amount of share capital a company
could raise during its
life time
(C) Issued Capital (III)Capital issued to
public for subscription
(D) Subscribed but not fully paid capital (IV) Amount called up and received but not fully

Choose the correct answer from the options
given below:
(1) (A)-(II), (B)-(I), (C)-(III), (D)-(IV)
(2) (A)-(II), (B)-(I), (C)-(IV), (D)-(III)
(3) (A)-(II), (B)-(IV), (C)-(I), (D)-(III)
(4) (A)-(II), (B)-(III), (C)-(I), (D)-(IV)

Ans A

23. On retirement/death of a partner, the remaining partners who have gained due to change in profit sharing ratio should compensate the :
(1) No partner
(2) Retiring partner only
(3)Remaining partners only (Who have sacrificed.)
(4) Remaining partners (who have sacrificed) as well as retiring partner.

Ans D

24. A, B & C were sharing profits & losses in the ratio of 3:2:1. They decided to share profits & losses equally in future. General reserve was appearing in their books at ₹60,000. Goodwill was valued at ₹1,20,000. The partners do not
want to disturb the general reserve. The adjusting entry will be:
(1) A's capital A/C Dr.        1,80,000
To C's Capital A/C                           1,80,000

(2) A's capital A/C Dr.        1,80,000
To B's Capital A/C                           1,20,000
To C's Capital A/C                           60,000
(3) C's capital A/C Dr.         30,000
To A's Capital A/C                           30,000
(4) C's capital A/C Dr.         1,80,000
To A's Capital A/C                            1,20,000
To B's Capital A/C                            60,000

Ans C

25. On dissolution of partnership, goodwill account is transferred to :
(1)The debit side of Realisation Account
(2)The credit side of Realisation Account
(3)The credit side of Partner's Capital/Current Account
(4) The debit side of Partner's Capital/Current Account

Ans A

26. If Average Capital Employed in a firm is ₹9,00,000; Average Profits ₹2,80,000 and Normal rate of return is 20%, then value of goodwill as per capitalisation of super profits is :
(1)₹1,24,000                                                     

(2) ₹5,00,000
(3) ₹45,00,000                                                   

(4)₹ 3,36,000

Ans B

27. Match List - I with List - II.

                    List - I                      List - II
(A) Current Ratio (I)Solvency Ratios
(B) Inventory Turnover Ratio (II)Liquidity Ratios
(C) Return on Investment (III) Profitability Ratios
(D) Proprietary Ratio (IV) Activity Ratios

Choose the correct answer from the options given below:
(1) (A)-(II), (B)-(IV), (C)-(I), (D)-(III)
(2) (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
(3) (A)-(II), (B)-(IV), (C)-(III), (D)-(I)
(4) (A)-(IV), (B)-(I), (C)-(III), (D)-(II)

Ans C

28. Identify the cash transaction from the following:
(1) Purchase of machinery by issue of preference shares

(2) Redemption of Debentures by issuing equity
shares
(3)Issue of Debentures as collateral security
(4)Purchase of land by taking loan

Ans D

29. On retirement, the retiring partner's capital account will be credited with :
(A) His/Her Capital Balance
(B) His/Her share of goodwill
(C) Share of goodwill of remaining partners
(D) his/her share of Reserve
(E) his/her drawings

Choose the correct answer from the options
given below:
(1) (A), (B) and (C) only
(2) (A), (B) and (D) only
(3) (B), (C) and (D) only
(4) (C), (B) and (D) only

Ans B

30. Shweta, Shreya and Shaniya were partners sharing profits in the ratio of 3:2:1. Shaniya retired from the firm and her capital, after making adjustments for reserves and gain of revaluation amounted to ₹ 4,50,000. Shaniya
took 25% of the furniture, accepted bill of exchange for ₹ 52,000. Finally ₹2,75,000 was transferred to her loan account. The total value
of furniture was :
(1) ₹2,58,000  

(2) ₹3,60,000
(3) ₹3,68,000      

(4) ₹4,92,000

Ans D 

31. Rohit, a partner paid the realisation expenses of 10,000 and he was to get a remuneration of ₹12,000 for completing the dissolution process and realisation expenses were borne by Rohit. The amount transferred to his capital A/c will
be:
(1) ₹12,000   

(2) ₹10,000
(3) ₹22,000       

(4) ₹2,000

Ans A

32. Match List - I with List - II.

List - I List - II
(A) Application money should be at least _________ % of the face value of the share (1)25%
(B) The amount of Call should not exceed__________% of the face value of the share (II) 90%
(C) Minimum subscription of capital cannot be less than__________ of
the issued amount according to SEBI
guidelines		 (III) 10%
(D) Interest charged on call-in- arrears is ___________ @ p.a. (IV) 5%

Choose the correct answer from the options given below:
(1) (A)-(IV), (B)-(I), (C)-(II), (D)-(III)
(2) (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
(3) (A)-(IV), (B)-(II), (C)-(I), (D)-(III)
(4) (A)-(III), (B)-(I), (C)-(IV), (D)-(II)

Ans A

33. Net Capital Employed is equal to :
(A) Fixed Assets + Current Assets - Long term liabilities
(B) Non current Assets + Current Assets - Current liabilities
(C) Fixed Assets + Current Assets - Equity
(D) Equity + Debt
(E) Current Assets - Current liabilities
Choose the correct answer from the options given below:
(1) (A) and (B) only
(2) (B) and (D) only
(3) (C) and (D) only
(4) (A) and (D) only

Ans B 

34. Find the correct sequence of procedure of issue of shares :
(A) Receipt of Applications
(B) Issue of prospectus
(C) Allotment of Shares
(D) Making call money due
(E) Receiving Call money

Choose the correct answer from the options given below:
(1) (A), (B), (C), (D), (E)                                     

(2) (B), (A), (C), (D), (E)
(3) (B), (C), (D), (A), (E)
(4) (B), (D), (A), (C), (E)

Ans B 

35. Under which Sub head do we show the Security Premium in the Balance Sheet ?
(1) Reserve and Surplus
(2) Share Capital
(3) Equity Share Capital
(4) Shares and Liabilities

Ans A

36. Other income is ₹5,00,000 which is 25% of Revenue from operations. Employees benefit Expenses are 30% of the Revenue from operation. Tax rate is 40%. Net profit after tax will be:
(1) ₹10,25,000                                                   

(2) ₹11,40,000
(3) ₹10,75,000                                                 

(4) ₹10,35,000

Ans B 

37. Common Size Statements are also known as :
(1) Dynamic analysis
(2) Horizontal analysis
(3) Vertical analysis
(4) External analysis

Ans C

38. An annual report is furnished by a company to its :
(1) Directors                                                     

(2) Auditors
(3) Shareholders                                               

(4) Management

Ans C

39. Cash equivalents refers to :
(A) Demand deposits with Bank
(B) Bills receivables
(C) Treasury bill
(D) Commercial Paper
(E) Marketable Securities

Choose the correct answer from the options
given below:
(1) (A), (C), (D) and (E) only
(2) (A), (B), (C) and (D) only
(3) (A), (B), (D) and (E) only
(4) (B), (C), (D) and (E) only

Ans A 

40. Identify the correct sequence to be followed at
the time of Retirement of a Partner :
(A) New Balance Sheet after Retirement             

(B) Transferring balance to Retiring partner's Loan Account
(C) Calculation Gaining/Sacrificing Ratio
(D) Partners' Capital Account
(E) Preparation of Revaluation Account

Choose the correct answer from the options given below:
(1) (C), (D), (E), (A), (B)
(2) (C), (E), (D), (B), (A)
(3) (A), (B), (C), (D), (E)
(4) (C), (E), (B), (A), (D)

Ans B

Based on the following answer the questions: 

Amrita and Kalyani are partners sharing profits in the ratio of 3:2. They decided to expand the business by admitting Suraj as new partner for 1/4th share. Suraj's share of goodwill is valued at 90,000 for which he compensated Amrita and Kalyani in the ratio 1: 4. Following information is also provided:

  Book Value
(₹)		 Revalued
figure (₹)
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
Workmen 5,00,000  
Compensation Fund    

Claim against workmen compensation is ₹
2,00,000 and goodwill appeared in the books at ₹ 60,000

41. Goodwill brought by Suraj will be distributed as:
(1) ₹54,000; ₹ 36,000
(2) ₹2,16,000; ₹1,44,000
(3) ₹18,000; ₹72,000
(4) ₹72,000;₹18,000

Ans C 

Based on the following answer the questions:
Amrita and Kalyani are partners sharing profits in the ratio of 3:2. They decided to expand the business by admitting Suraj as new partner for 1/4th share. Suraj's share of goodwill is valued at 90,000 for which he compensated Amrita and Kalyani in the ratio 1: 4. Following information is also provided:

  Book Value
(₹)		 Revalued
figure (₹)
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
Workmen 5,00,000  
Compensation
Fund		    

Claim against workmen compensation is ₹
2,00,000 and goodwill appeared in the books at
₹ 60,000

42. Share of revaluation profit of Amrita and
Kalyani is:
(1)₹24,00,000 and₹16,00,000
(2)₹16,00,000 and ₹24,00,000
(3)₹8,00,000 and₹32,00,000                            (4)₹20,00,000 and₹ 20,00,000

Ans A 

Based on the following answer the questions:
Amrita and Kalyani are partners sharing profits in the ratio of 3:2. They decided to expand the business by admitting Suraj as new partner for
1/4th share. Suraj's share of goodwill is valued at 90,000 for which he compensated Amrita and
Kalyani in the ratio 1: 4. Following information
is also provided:

  Book Value
(₹)		 Revalued
figure (₹)
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
Workmen 5,00,000  
Compensation
Fund		    

Claim against workmen compensation is ₹ 2,00,000 and goodwill appeared in the books at ₹ 60,000

43. What is Amrita's share in the workmen
compensation fund?
(1)₹ 3,00,000                                                    (2)₹ 1,80,000
(3)₹1,20,000                                                      (4) ₹1,00,000

Ans B

Based on the following answer the questions:
Amrita and Kalyani are partners sharing profits in the ratio of 3:2. They decided to expand the business by admitting Suraj as new partner for 1/4th share. Suraj's share of goodwill is valued at 90,000 for which he compensated Amrita and Kalyani in the ratio 1: 4. Following information
is also provided:

  Book Value
(₹)		 Revalued
figure (₹)
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
Workmen 5,00,000  
Compensation
Fund		    

Claim against workmen compensation is ₹
2,00,000 and goodwill appeared in the books at
₹ 60,000

44. What journal entry will be passed for goodwill
appearing in the books?
(1) Dr. Goodwill A/c                 ₹60,000
Cr. Amrita's Capital A/c                          ₹36,000
Cr. Kalyani's Capital A/c                         ₹ 24,000
(2)Dr. Amrita's Capital A/c        ₹36,000
Dr. Kalyani's Capital A/c                         ₹24,000
Cr. Goodwill A/c                                     ₹60,000
(3) Dr. Amrita's Capital A/c       ₹12,000
Dr. Kalyani's Capital A/c                          ₹48,000
Cr. Goodwill A/c                                     ₹60,000
(4) Dr. Goodwill A/c                  ₹60,000
Cr. All partner's Capital A/c                    ₹60,000

Ans B

Based on the following answer the questions:
Amrita and Kalyani are partners sharing profits in the ratio of 3:2. They decided to expand the business by admitting Suraj as new partner for 1/4th share. Suraj's share of goodwill is valued at 90,000 for which he compensated Amrita and Kalyani in the ratio 1: 4. Following information
is also provided:

  Book Value
(₹)		 Revalued
figure (₹)
Machinery 25,00,000 27,00,000
Land 10,00,000 50,00,000
Computers 2,50,000 50,000
Workmen 5,00,000  
Compensation
Fund		    

Claim against workmen compensation is ₹
2,00,000 and goodwill appeared in the books at
₹ 60,000

45. A new partner can be admitted:
(1)If all the existing partners agree
(2)If Majority of the existing partner agree
(3)If any one of the existing partner agree
(4)If 4/5th of the existing partner agree

Ans A 

Based on the following, answer the question.
XYZ Ltd. has been operating in the field of FMCG products in the South Indian market. However to expand its operation in the northern part of India, it needs additional capital 20,00,000 which is raised by issuing 10% Debenture of 12,00,000 of 100 issued at a discount of 10% to be repayable after 6 years.
The rest of the funds is raised by issuing 5% debenture of 8,00,000 of 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of 5,00,000 from PNB against 5% debenture of 8,00,000 of ₹ 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

46. XYZ Ltd. issues 10% debentures of 12,00,000 of 100 each at a discount of 10% which will be repayable after 6 years. What type of debenture it is?
(1)Zero Coupon Rate Bonds/Debenture
(2)Redeemable Debentures
(3) Convertible Debenture
(4) Irredeemable Debenture

Ans B 

Based on the following, answer the question.
XYZ Ltd. has been operating in the field of FMCG products in the South Indian market. However to expand its operation in the northern part of India, it needs additional capital 20,00,000 which is raised by issuing 10% Debenture of 12,00,000 of 100 issued at a discount of 10% to be repayable after 6 years.
The rest of the funds is raised by issuing 5% debenture of 8,00,000 of 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of 5,00,000 from PNB against 5% debenture of 8,00,000 of ₹ 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

47. XYZ Ltd. issued another category of debenture which are perpetual in nature. What type of debentures they are called:
(1) Irredeemable Debentures
(2) Convertible Debenture
(3) Redeemable Debentures
(4) Bearer Debentures

Ans A

Based on the following, answer the question.
XYZ Ltd. has been operating in the field of FMCG products in the South Indian market. However to expand its operation in the northern part of India, it needs additional capital 20,00,000 which is raised by issuing 10% Debenture of 12,00,000 of 100 issued at a discount of 10% to be repayable after 6 years.
The rest of the funds is raised by issuing 5% debenture of 8,00,000 of 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of 5,00,000 from PNB against 5% debenture of 8,00,000 of ₹ 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

48. While issuing 10% debenture of ₹12,00,000 at 10% discount. What amount should be transferred to "Discount on issue of debenture A/c" if all amounts are received in one installment ?
(1) ₹10,000                                                   

(2)₹12,000
(3)₹1,20,000                                       

(4)₹1,00,000

Ans C

Based on the following, answer the question.
XYZ Ltd. has been operating in the field of FMCG products in the South Indian market. However to expand its operation in the northern part of India, it needs additional capital 20,00,000 which is raised by issuing 10% Debenture of 12,00,000 of 100 issued at a discount of 10% to be repayable after 6 years.
The rest of the funds is raised by issuing 5% debenture of 8,00,000 of 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of 5,00,000 from PNB against 5% debenture of 8,00,000 of ₹ 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

49. If 5% debenture of ₹8,00,000 of ₹100 were issued at 15% premium. Amount is payable as * 25 on applications, 50 on allotment and 40 on 1st and final call. How much amount should be credited to "Security Premium Reserve A/c".
(1)₹1,20,000                                                     

(2)₹8,00,000
(3) ₹9,20,000                                                     

(4) ₹1,00,000

Ans A

Based on the following, answer the question.
XYZ Ltd. has been operating in the field of FMCG products in the South Indian market. However to expand its operation in the northern part of India, it needs additional capital 20,00,000 which is raised by issuing 10% Debenture of 12,00,000 of 100 issued at a discount of 10% to be repayable after 6 years.
The rest of the funds is raised by issuing 5% debenture of 8,00,000 of 100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, company took a loan of 5,00,000 from PNB against 5% debenture of 8,00,000 of ₹ 100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

50. Company raised a loan of 5,00,000 from PNB against a 5 % debenture of 8,00,000 of 100 each as collateral security. The "Debenture suspense A/c" will be debited with :
(1) ₹5,00,000
(2) ₹3,00,000
(3) ₹8,00,000
(4) ₹13,00,000

Ans C