CBSE Class 12 Issue and Redemption of Debentures Multiple Choice Questions with Answers. MCQ Questions Class 12 Issue and Redemption of Debentures with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 12 Issue and Redemption of Debentures with Answers to know their preparation level.
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MCQ Questions Class 12 Issue and Redemption of Debentures with Answers - Set - 1
Question 1:
If debentures purchased in open market are not immediately cancelled, they are treated as :
(a) Current Assets
(b) Current Liabilities
(c) Investment
(d) Capital
Correct Answer – (C)
Question 2:
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
Correct Answer – (B)
Question 3:
Debentures can be redeemed out of:
(a) Profit
(b) Capital
(c) Provision
(d) All of the above
Correct Answer – (D)
Question 4:
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
Correct Answer – (D)
Question 5:
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%
Correct Answer – (B)
MCQ Questions Class 12 Issue and Redemption of Debentures With Answers
Question 6:
Debentures cannot be redeemed at:
(a) Par
(b) Premium
(c) Discount
(d) More than 10% premium
Correct Answer – (C)
Question 7:
Premium on redemption of debentures is a :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) Suspense A/c
Correct Answer – (C)
Question 8:
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
Correct Answer – (C)
Question 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
Correct Answer – (C)
Question 10:
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
