Issue and Redemption of Debentures MCQ Questions for Class 12 Accountancy Chapter 7 with Answers

NCERTCOURSE.COM- Find here the NCERT/CBSE chapter-wise Multiple Choice Questions from Class 12 Accountancy book Chapter 7 Issue and Redemption of Debentures with Answers Pdf free download. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Issue and Redemption of Debentures. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.

MCQ Questions for Class 12 Accountancy with Answers

Q1. Public Limited company can issue:

(i) Equity Share
(ii) Preference Share
(iii) Debenture
(iv) All of these.

(iv) All of these.

Q2. Loss on issue of debentures is recorded as :

(i) Intangible Asset
(ii) Current Asset
(iii) Current Liability
(iv) Miscellaneous Expenditure

(iv) Miscellaneous Expenditure

Q3. The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to :

(i) Profit & Loss Account
(ii) Profit & Loss Appropriation Account
(iii) General Reserve Account
(iv) Sinking Fund Account

(iii) General Reserve Account

Q4. Debentures may be issued at _.

(i) par
(ii) premium
(iii) Discount
(iv) All of these.

(iv) All of these.

Q5. Which of the following is false with respect to debentures?

(i) They can be issued in lieu of dividends
(ii) They can be issued for cash
(iii) They can be issued for consideration other than cash
(iv) They can be issued as collateral security

(i) They can be issued in lieu of dividends

Q6. Debentures can be redeemed out of:

(i) Profit
(ii) Capital
(iii) Provision
(iv) All of the above

(iv) All of the above

Q7. The provisions of Companies Act 2013 with respect to redemption to debentures are to protect the interest of

(i) debenture holders
(ii) creditors
(iii) shareholders
(iv) Banks

(i) debenture holders

Q8. Premium on redemption of debentures is a

(i) Liability account
(ii) Asset Account
(iii) Expense Account
(iv) None of these.

(i) Liability account

Q9. Premium on redemption of debentures is a :

(i) Personal A/c
(ii) Real A/c
(iii) Nominal A/c
(iv) Suspense A/c

(iii) Nominal A/c

Q10. Discount on issue of debentures is __ asset.

(i) Current profit
(ii) fixed
(iii) fictitious
(iv) intangible.

(iii) fictitious

Q11. Debentures of a Company can be issued :

(i) For Cash
(ii) For Consideration other than Cash
(iii) As a Collateral Security
(iv) All of the above

(iv) All of the above

Q12. Debentures cannot be redeemed at:

(i) Par
(ii) Premium
(iii) Discount
(iv) More than 10% premium

(iii) Discount

Q13. Premium on issue of debenture is __.

(i) capital profit
(ii) capitalised loss
(iii) normal profit
(iv) normal loss.

(i) capital profit

Q14. If Vendors are issued debentures of Rs.4,40,000 in consideration of assets of Rs. 5,00,000 and liabilities of Rs. 1,00,000, the balance of Rs.40,000 will be debited to:

(i) General Reserve Account
(ii) Capital Reserve Account
(iii) Goodwill Account
(iv) Statement of Profit & Loss

(iii) Goodwill Account

Q15. Sources of finance of the redemption of debentures are:

(i) Redemption out of profits
(ii) Redemption out of capital
(iii) The proceeds from fresh issue of shares/debentures
(iv) All the above

(iv) All the above

Q16. Loss on issue of debenture is __.

(i) capitalised profit
(ii) capitalised loss
(iii) normal profit
(iv) normal loss

(ii) capitalised loss

Q17. When all the debentures are redeemed, balance in the debentures redemption fund account is transferred to :

(i) Capital Reserve
(ii) General Reserve
(iii) Statement of P & L
(iv) None of these

(ii) General Reserve.

Q18. A company issued 1,000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for:

(i) Rate of dividend
(ii) Rate of Tax
(iii) Rate of interest
(iv) None of these

(iii) Rate of interest

Q19. Debentures are usually __.

(i) secured
(ii) unsecured
(iii) assets
(iv) loss.

(i) secured

Q20. When debentures are to be redeemed at premium an extra entry has to be made at the time of issue of debentures, which a/c should be credited in this entry?

(i) Loss on issue of debentures a/c
(ii) Debenture redemption premium a/c
(iii) Bank a/c
(iv) Debenture holder’s a/c

(ii) Debenture redemption premium a/c

Q21. Loss on Issue of Debenture Account is shown:

(i) On Assets side of Balance Sheet
(ii) On Liabilities side of Balance Sheet
(iii) On Credit side of P & L Account
(iv) None of these

(i) On Assets side of Balance Sheet

Q22. When debentures are issued then __ account is opened.

(i) capital
(ii) debenture
(iii) loan
(iv) All of these.

(ii) debenture

Q23. Interest on Debentures is paid on

(i) Amount received on Issue.
(ii) Nominal (Face) Value.
(iii) On Premium.
(iv) None of these.

(ii) Nominal (Face) Value.

Q24. Premium on Redemption of Debentures A/c is:

(i) Asset
(ii) Expenses
(iii) Liability
(iv) Revenue

(iii) Liability

Q25. Sinking fund investment is:

(i) An Income
(ii) An exause
(iii) An Asset
(iv) A Liability

(iii) An Asset

I Think the given NCERT MCQ Questions for class 12 Accountancy book Chapter 7 Issue and Redemption of Debentures with Answers Pdf free download will assist you. If you’ve got any queries regarding CBSE Class 12 Accountancy Issue and Redemption of Debentures MCQs Multiple Choice Questions with Answers, drop a comment below and that we will come back to you soon.

MCQ Class 12 Accountancy with answers Part A & Part B

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