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 - 2
Question 1:Â
When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to :
(a) Profit & Loss A/c
(b) Debenture Application and Allotment A/c
(c) Loss on Issue of Debentures A/c
(d) Premium on Redemption A/c
Correct Answer – (C)
Question 2:Â
Interest on sinking fund investment is credited to :
(a) Profit & Loss A/c
(b) Sinking Fund A/c
(c) General Reserve A/c
(d) Sinking Fund Investment A/c
Correct Answer – (B)
Question 3:Â
Profit on sale of Sinking Fund Investment is transferred to:
(a) Profit & Loss Account
(b) General Reserve
(c) Sinking Fund Account
(d) Capital Reserve
Correct Answer – (C)
Question 4:Â
If redemption of debentures is made by conversion method, the amount to be transferred to ‘Debenture Redemption Reserve Account’ will be equal to _________ percent of converted amounted.
(a) 40
(b) 50
(c) 60
(d) Not required
Correct Answer – (D)
Question 5:Â
A company issued 1,000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for:
(a) Rate of dividend
(b) Rate of Tax
(c) Rate of interest
(d) None of these
Correct Answer – (C)
MCQ Questions Class 12 Issue and Redemption of Debentures With Answers
Question 6:Â
Sinking fund investment is:
(a) An Income
(b) An exause
(c) An Asset
(d) A Liability
Correct Answer – (C)
Question 7:Â
Premium on Redemption of Debentures A/c is:
(a) Asset
(b) Expenses
(c) Liability
(d) Revenue
Correct Answer – (C)
Question 8:Â
Loss on Issue of Debenture Account is shown:
(a) On Assets side of Balance Sheet
(b) On Liabilities side of Balance Sheet
(c) On Credit side of P & L Account
(d) None of these
Correct Answer – (A)
Question 9:Â
A company should transfer to Debenture Redemption Reserve A/c at least what percent of the amount of debentures issued before the commencement of redemption of debentures-
(a) 50%
(b) 25%
(c) 15%
(d) 100%
Correct Answer – (B)
Question 10:Â
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 the above
