L-11 » Redemption of Debenture- MCQs (12th) | Accountancy | Objective Questions- 12th

Multiple Choice

VVI

Verified

ID- 4785

BSEB, 2013, 18

1. Profit of cancellation of own debentures is transferred to:

(A) Profit and Loss Statement
(B) Profit and Loss Appropriation Statement
(C) General Reserve Account
(D) Capital Reserve Account

Aug 29, 2022 at 09:17 AM

Multiple Choice

Verified

ID- 4786

BSEB, 2011, 18

2. According to Company Rules, 2014 a company will have to create a Debenture Redemption Reserve at least ............ of the face value of redeemable debentures:

(A) 50 %
(B) 25 %
(C) 70 %
(D) 100 %

Aug 29, 2022 at 09:17 AM

Multiple Choice

VVI

Verified

ID- 4787

3. Interest on sinking fund investment is credited to:

(A) Profit & Loss Statement
(B) Sinking Fund A/c
(C) General Reserve A/c
(D) Sinking Fund Investment

Aug 29, 2022 at 09:17 AM

Multiple Choice

VVI

Verified

ID- 4788

4. If debentures purchased in the open market are not immediately cancelled, these are:

(A) Current Assets
(B) Current Liabilities
(C) Investment
(D) Profits

Aug 29, 2022 at 09:17 AM

Multiple Choice

Verified

ID- 4789

BSEB, 2010

5. When all debentures are redeemed, the balance in the Debenture Redemption Fund Account is transferred to:

(A) Capital Reserve
(B) General Reserve
(C) Profit & Loss Appropriation Statement
(D) None of these

Aug 29, 2022 at 09:17 AM

Multiple Choice

VVI

Verified

ID- 4790

BSEB, 2017, 19

6. Profit on cancellation of own debentures is:

(A) Revenue Profit
(B) Capital Profit
(C) Operating Profit
(D) Trading Profit

Aug 29, 2022 at 09:18 AM

Multiple Choice

Verified

ID- 4791

BSEB, 2017

7. In cash of fully convertible debentures, that must be transferred to debenture redemption reserve, before the commencement of redemption of debentures:

(A) 25 %
(B) 50 %
(C) 100 %
(D) zero

Aug 29, 2022 at 09:17 AM

Multiple Choice

Verified

ID- 4792

8. At least at what percent of the nominal value of non-convertible part of debentures to be redeemed, investment is specie securities will have to be model.

(A) 50 %
(B) 15 %
(C) 25 %
(D) 100 %

Aug 29, 2022 at 09:16 AM

Multiple Choice

VVI

Verified

ID- 4793

9. When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to:

(A) Profit & Loss Statement
(B) Debenture Application & Allotment A/c
(C) Loss on Issue of Debentures A/c
(D) Premium on Redemption A/c

Aug 29, 2022 at 09:16 AM

Multiple Choice

VVI

Verified

ID- 4794

10. Profit on sale of Sinking fund Investments is transferred to:

(A) Profit & Loss Statement
(B) General Reserve
(C) Sinking Fund Account
(D) Capital Reserve

Aug 29, 2022 at 09:16 AM

Multiple Choice

VVI

Verified

ID- 4795

11. 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 Statement

Aug 29, 2022 at 09:16 AM

Multiple Choice

VVI

Verified

ID- 4796

BSEB, 2017

12. Profit on Redemption of Debenture is transferred to which account?

(A) Capital Reserve Account
(B) Sinking Fund Account
(C) General Reserve Account
(D) Profit & Loss Statement

Aug 29, 2022 at 09:16 AM

Multiple Choice

VVI

Verified

ID- 4797

13. Premium on Redemption of Debenture A/c is in the nature of:

(A) Personal A/c
(B) Real A/c
(C) Nominal A/c
(D) None of these

Aug 29, 2022 at 09:16 AM

Multiple Choice

Verified

ID- 4798

14. 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 %

Aug 29, 2022 at 09:16 AM

Multiple Choice

Verified

ID- 4799

15. 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 Statement

Aug 29, 2022 at 09:16 AM

Multiple Choice

Verified

ID- 4800

16. 6,000 debentures of ₹ 10 each were discharged by issuing equity shares of ₹ 10 each at a 20 % premium. The number of shares issued will be:

(A) 50,000
(B) 60,000
(C) 5,000
(D) 6,000

Aug 29, 2022 at 09:15 AM

Multiple Choice

Verified

ID- 4801

17. BST Ltd. wants to redeem its 900, 10% debentures at 105 % by converting them into shares of ₹10 each at ₹9 each. The number of shares to be issued will be:

(A) 9,000 shares
(B) 10,500 shares
(C) 10,000 shares
(D) 8,500 shares

Aug 29, 2022 at 09:15 AM

Multiple Choice

VVI

Verified

ID- 4802

18. Sources of finance for 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

Aug 29, 2022 at 09:15 AM

Multiple Choice

Verified

ID- 4803

19. If debentures purchased in the open market are not immediately cancelled, they are treated as:

(A) Current Assets
(B) Current Liabilities
(C) Investment
(D) Capital

Aug 29, 2022 at 09:15 AM

Multiple Choice

VVI

Verified

ID- 4804

20. Balance of 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. Statement
(D) None of these

Aug 29, 2022 at 09:15 AM

Multiple Choice

VVI

Verified

ID- 4805

21. Sinking fund always shows:

(A) Debit Balance
(B) Credit Balance
(C) Profit
(D) None of these

Aug 29, 2022 at 09:14 AM

Multiple Choice

VVI

Verified

ID- 4806

22. Sinking fund investment account always shows:

(A) Debit Balance
(B) Credit Balance
(C) Liability
(D) None of these

Aug 29, 2022 at 09:14 AM

Multiple Choice

Verified

ID- 4807

23. If a debenture of ₹ 1,00,000 were issued for a discount of ₹ 10,000, which are redeemable after four years. The 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

Aug 29, 2022 at 09:14 AM

Multiple Choice

VVI

Verified

ID- 4808

24. The balance of the 'Sinking Fund Account' after the redemption of debentures is transferred to:

(A) Profit & Loss Statement
(B) Profit & Loss Appropriation Statement
(C) General Reserve Account
(D) Sinking Fund Account

Aug 29, 2022 at 09:14 AM

Multiple Choice

Verified

ID- 4809

25. Own debentures are those debentures of the company which:

(A) The company allots to its on promoters
(B) The company allots to its directors
(C) The company purchase from the markets and hold them as investments
(D) None of these

Aug 29, 2022 at 09:14 AM

Multiple Choice

VVI

Verified

ID- 4810

26. Sinking Fund Investment is/an:

(A) Income
(B) Expenditure
(C) Asset
(D) Liability

Aug 29, 2022 at 09:13 AM

Multiple Choice

VVI

Verified

ID- 4811

27. Premium on redemption of debentures is generally provided at the time of:

(A) Issue of debentures
(B) Redemption of debentures
(C) Writting off
(D) After 10 years

Aug 29, 2022 at 09:13 AM

Multiple Choice

VVI

Verified

ID- 4812

28. 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

Aug 29, 2022 at 09:13 AM

Multiple Choice

VVI

Verified

ID- 4813

BSEB, 2016

29. Debentures can be redeemed out of:

(A) Profit
(B) Capital
(C) Provision
(D) All of the above

Aug 29, 2022 at 09:12 AM

Multiple Choice

VVI

Verified

ID- 4814

BSEB, 2016, 19

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

(A) Asset
(B) Expenses
(C) Liability
(D) Revenue

Aug 29, 2022 at 09:12 AM

Multiple Choice

VVI

Verified

ID- 4815

31. Premium on Redemption of Debentures is a:

(A) Personal A/c
(B) Real A/c
(C) Nominal A/c
(D) Suspense Alc

Aug 29, 2022 at 09:12 AM

Multiple Choice

Verified

ID- 4816

32. Profit on sale of debentures redemption fund investment in the first instance is credited to:

(A) Debentures Redemption Fund A/c
(B) Profit & Loss Appropriation Statement
(C) General Reserve A/c
(D) Sinking Fund A/c

Aug 29, 2022 at 09:12 AM

Multiple Choice

Verified

ID- 4817

33. If the redemption of debentures is made by conversion method, the amount to be transferred to ' Debenture Redemption Reserve Account' will be equal to ............ percent of convertible amounted:

(A) 40
(B) 50
(C) 60
(D) Zero

Aug 29, 2022 at 09:12 AM

Multiple Choice

VVI

Verified

ID- 4818

34. A Sinking fund is a part of:

(A) Fixed Liabilities
(B) Current Liabilities
(C) Reserve & Surplus
(D) Fixed Assets

Aug 29, 2022 at 09:12 AM

Multiple Choice

Verified

ID- 4819

35. Deep Ltd. issued 10,00,000, 7 % debentures of ₹ 100 each at a discount of 4%, redeemable after five years at a premium of 6%. Loss issue of debentures is:

(A) ₹ 10,00,000
(B) ₹ 6,00,000
(C) ₹ 16,00,000
(D) ₹ 4,00,000

Aug 29, 2022 at 09:10 AM

Multiple Choice

Verified

ID- 4820

36. X Ltd. wants to redeem 5,000, 5 % Debentures of ₹ 100 each at 5% premium. How much amount it must transfer to the debenture redemption reserve if it has already a balance of ₹ 1,00,000 in the Debenture Redemption Reserve Account:

(A) ₹ 4,00,000
(B) ₹25,000
(C) ₹ 1,50,000
(D) ₹ 2,50,000

Aug 29, 2022 at 09:10 AM

Redemption of Debenture

Board » Bihar Board » Class 12th » English Medium » Commerce » Accountancy » L-11: Redemption of Debenture

Objective Questions (MCQs)

1. Profit of cancellation of own debentures is transferred to:

2. According to Company Rules, 2014 a company will have to create a Debenture Redemption Reserve at least ............ of the face value of redeemable debentures:

3. Interest on sinking fund investment is credited to:

4. If debentures purchased in the open market are not immediately cancelled, these are:

5. When all debentures are redeemed, the balance in the Debenture Redemption Fund Account is transferred to:

6. Profit on cancellation of own debentures is:

7. In cash of fully convertible debentures, that must be transferred to debenture redemption reserve, before the commencement of redemption of debentures:

8. At least at what percent of the nominal value of non-convertible part of debentures to be redeemed, investment is specie securities will have to be model.

9. When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to:

10. Profit on sale of Sinking fund Investments is transferred to:

11. When debentures are redeemed out of profits, an equivalent amount is transferred to:

12. Profit on Redemption of Debenture is transferred to which account?

13. Premium on Redemption of Debenture A/c is in the nature of:

14. 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?

15. 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?

16. 6,000 debentures of ₹ 10 each were discharged by issuing equity shares of ₹ 10 each at a 20 % premium. The number of shares issued will be:

17. BST Ltd. wants to redeem its 900, 10% debentures at 105 % by converting them into shares of ₹10 each at ₹9 each. The number of shares to be issued will be:

18. Sources of finance for the redemption of debentures are:

19. If debentures purchased in the open market are not immediately cancelled, they are treated as:

20. Balance of Loss on Issue of debenture account is shown:

21. Sinking fund always shows:

22. Sinking fund investment account always shows:

23. If a debenture of ₹ 1,00,000 were issued for a discount of ₹ 10,000, which are redeemable after four years. The amount of discount to be written off from P. & L. Account each year is:

24. The balance of the 'Sinking Fund Account' after the redemption of debentures is transferred to:

25. Own debentures are those debentures of the company which:

26. Sinking Fund Investment is/an:

27. Premium on redemption of debentures is generally provided at the time of:

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

29. Debentures can be redeemed out of:

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

31. Premium on Redemption of Debentures is a:

32. Profit on sale of debentures redemption fund investment in the first instance is credited to:

33. If the redemption of debentures is made by conversion method, the amount to be transferred to ' Debenture Redemption Reserve Account' will be equal to ............ percent of convertible amounted:

34. A Sinking fund is a part of:

35. Deep Ltd. issued 10,00,000, 7 % debentures of ₹ 100 each at a discount of 4%, redeemable after five years at a premium of 6%. Loss issue of debentures is:

36. X Ltd. wants to redeem 5,000, 5 % Debentures of ₹ 100 each at 5% premium. How much amount it must transfer to the debenture redemption reserve if it has already a balance of ₹ 1,00,000 in the Debenture Redemption Reserve Account: