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.
Students who are searching for NCERT MCQ Questions Class 12 Issue and Redemption of Debentures with Answers are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Issue and Redemption of Debentures with Answers. You can also verify your answers from the provided MCQ Class 12 Issue and Redemption of Debentures with Answers. So, ace up your preparation with MCQ of Class 12 Accountancy Examinations.
MCQ Questions Class 12 Issue and Redemption of Debentures with Answers - Set - 3
Question 1:Â
A Sinking Fund is a part of:
(a) Fixed Liabilities
(b) Current Liabilities
(c) Reserves and Surplus
(d) Fixed Assets
Correct Answer – (C)
Question 2:Â
6,000 debentures of ₹ 10 each where discharged by issuing equity shares of ₹ 10 each at 20% premium. The number of shares issued will be :
(a) 50,000
(b) 60,000
(c) 5,000
(d) 6,000
Correct Answer – (C)
Question 3:Â
Profit on redemption of debentures in transferred to which account ?
(a) Capital Reserve Account
(b) Sinking Gund Account
(c) General Reserve Account
(d) Profit & Loss Account
Correct Answer – (A)
Question 4:Â
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 Issue of Debentures A/c
(d) Profit & Loss A/c
Correct Answer – (C)
Question 5:Â
When debentures are redeemed out of profits, an equivalent amount is transferred to :
(a) General Reserve
(b) Debenture Redemption Reserve
(c) Capital Reserve
(d) Profit & Loss A/c
Correct Answer – (B)
MCQ Questions Class 12 Issue and Redemption of Debentures With Answers
Question 6:Â
Every company required to create DRR shall on or before the 30th April of each year, deposit or invest, a sum which shall not be less than _________________ of the amount of its debentures maturing (to be redeemed) during the year ending on 31st March of the next year.)
(a) 10%
(b) 15%
(c) 25%
(d) 50%
Correct Answer – (B)
Question 7:Â
Profit on cancellation of own debentures is :
(a) Revenue Profit
(b) Capital Profit
(c) Operating Profit
(d) Trading Profit
Correct Answer – (B)
Question 8:Â
According to SEBI guidelines what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redumption of debentures, in case of convertible debentures ?
(a) 25%
(b) 50%
(c) 100%
(d) zero
Correct Answer – (D)
Question 9:Â
Profit on sale of debentures redemption fund investment in the first instance in credited to :
(a) Debenture Redemption Fund A/c
(b) Profit & Loss Appropriation A/c
(c) General Reserve A/c
(d) Sinking Fund A/c
Correct Answer – (A)
Question 10:Â
Own debentures are those debentures of the company which ?
(a) The company allots to its own promotors
(b) The company allots to its directors
(c) The company purchases from the markets and hold them as investments
(d) None of these
