Get ready viably for the test-taking the assistance of Class 12 MCQ Questions of Redemption of Debentures with Answers liberated from cost from here. Students additionally can rehearse Multiple Choice Questions of Redemption of Debentures with Answers. Each question has four alternatives followed by the right answer. MCQ Questions get ready to assist students with understanding the idea well overall.
Students additionally can step through a free examination of the Multiple Choice Questions of Class 12 Accountancy. Each question has four alternatives followed by the right answer. This might help you to understand and check you
1. Types of debentures on the basis of priority
a) Both
b) First debentures
c) Second debenture
d) None of the options
2. Which debentures are issued with a specific rate of interest
a) Coupon rate debentures
b) First debentures
c) Second debenture
d) None of the options
3. Debentures can be issued at par at premium or discount but redemption only
a) Both
b) Redeemable at par
c) Redeemable at premium
d) None of the options
4. Debentures account is always credited with the
a) Nominal value
b) Premium Value
c) Discount value
d) None of the options
5. Redemption of debentures means
a) Repayment of the due amount of debentures to the debenture holders
b) Repayment of the due amount of debentures to the Share holders
c) Repayment of the due amount of debentures to the Employees
d) None of the options
6. When repayment is made at the date of maturity called
a) Maturity Date
b) Maturity Profit
c) Maturity Capital
d) None of the options
7. When all debentures are redeemed, balance in the Debenture Redemption Fund Account is transferred to:
(a) Capital Reserve
(b) General Reserve
(c) Profit & Loss Appropriation A/c
(d) None of these
8. According to SEBI guidelines, a Company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued:
(a) 50%
(b) 25%
(c) 70%
(d) 100%
9. The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to :
(a) Profit & Loss Account
(b) Profit & Loss Appropriation Account
(c) General Reserve Account
(d) Sinking Fund Account
10. Profit on cancellation of own debentures is transferred to:
(a) Profit & Loss Account
(b) Profit & Loss Appropriation Account
(c) General Reserve Account
(d) Capital Reserve Account
11. If debenture of ₹ 1,00,000 were issued for discount of ₹ 10,000, which are redeemable after four years. Then amount of discount to be written off from P. & L. Account each year is :
(a) ₹ 3,000
(b) ₹ 4,000
(c) ₹ 2,500
(d) ₹ 5,000
12. Debentures can be redeemed out of:
(a) Profit
(b) Capital
(c) Provision
(d) All of the above
13. Premium on redemption of debentures is generally provided at the time of _______.
(a) Issue of debentures
(b) Redemption of debentures
(c) Writing off
(d) After 10 years
14. Sources of finance of the redemption of debentures are ______.
(a) Redemption out of profits
(b) Redemption out of capital
(c) The proceeds from fresh issue of shares/debentures
(d) All of the above
15. Loss on the issue of debenture account is shown _______.
(a) On the assets side of the balance sheet
(b) On the liabilities side of the balance sheet
(c) On the credit side of the profit and loss account
(d) None of the above
16. When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to _______.
(a) Profit and loss A/c
(b) Debenture application and allotment A/c
(c) Loss on the issue of debentures A/c
(d) Premium on redemption A/c
17. When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue?
(a) Debentures A/c
(b) Premium on redemption of debentures A/c
(c) Loss on the issue of debentures A/c
(d) Profit and loss A/c
18. Premium on redemption of debentures A/c is in the nature of ______.
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of the above
19. In case of the issue of debentures as collateral security for a loan from the bank, which account will be debited?
(a) Bank account
(b) Bank loan account
(c) Debentures account
(d) Debentures suspense account
20. If debentures of Rs 50,000 are issued at par but redeemable at a premium of 10%. By what principle of accounting, the loss on issue of debentures account will be debited with ` 5,000 while passing the issue entry ?
(a) Principle of Revenue recognition
(b) Principle of Materiality
(c) Principle of Conservatism/Prudence
(d) Principle of Full Disclosure.
21. Perpetual debentures are also known as
a) Irredeemable debentures
b) Secured Debentures
c) Unsecured Debentures
d) None of the options
22. Debentures which are transferable by mere delivery are
a. registered debentures
b. first debentures
c. bearer debentures
d. second debentures.
23. X Ltd. has issued 10,000 6% debentures of 100 each. The company decide to redeem half of its debentures at 10% premium. There was a balance of3,40,000 in Debenture redemption reserve. As per SEBI guidelines what amount still need to be transferred to Debenture redemption reserve account out of profits.
(a) Rs6,60,000
(b) Rs1,60,000
(c) Rs 5,50,000
(d) Rs 2,75,000
24. Loss on issue of debentures is recorded as :
(a) Intangible Asset
(b) Current Asset
(c) Current Liability
(d) Miscellaneous Expenditure
25. Madhu Ltd. decides to redeem 1,000, 10% Debentures of ₹100 each redeemable at 10% Premium. The Company will have to invest in specified securities at least :
(a) ₹15,000
(b) ₹16,500
(c) ₹25,000
(d) ₹27,500
