Issue and Redemption of Debentures MCQ Questions Class 12 Accountancy Part II Chapter 2
NCERT MCQ Questions for Class 12 Accountancy Part II Chapter 2 Issue and Redemption of Debentures. Issue and Redemption of Debentures MCQ Questions with Answers from Class 12 Accountancy Part II.
(1) The funds raised through debentures by a company is for ——–.
(a) Short term requirement of funds
(b) Long term requirement of funds
(c) Medium term requirement of funds
(d) Both (a) and (c)
Ans: (b) Long term requirement of funds.
(2) According to section 2 (30) of the companies Act 2013, “Debentures” includes ——-.
(a) Debentures inventory
(b) Bonds
(c) Any other securities irrespective of its charge on assets.
(d) All of these
Ans: (d) All of these
(3) The return on debentures is known as ——–.
(a) Divided
(b) Profit
(c) Interest
(d) Bonus
Ans: (c) Interest
(4) When the debentures are converted into shares, then those debentures are called as ——.
(a) Secured debentures
(b) Unsecured Debentures
(c) Convertible Debentures
(d) Redeemable debentures
Ans: (c) Convertible Debentures
(5) Under the category of tenure, debentures are classified into two types. They are ——–.
(a) Fully convertible, party convertible
(b) Secured, unsecured
(c) Redeemable, irredeemable
(d) Zero coupon rate, specified rate
Ans: (c) Redeemable, irredeemable
(6) X Ltd issued 2,000 10% debentures of Rs 50 each at a premium of Rs 5 per debenture. The amount transferred to securities premium A/c is ——–.
(a) Rs 10,000
(b) Rs 20,000
(c) Rs 15,000
(d) Rs 10,00,00
Ans: (a) Rs 10,000
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(7) When a debenture is issued at a price below its nominal value, it is said to be ——.
(a) Issued at per
(b) Issued at premium
(c) Issued at discount
(d) Issued at consideration other than cash
Ans: (c) Issued at discount.
(8) The journal entry for application money transferred to debenture A/c on allotment is ——-.
(a) Bank A/c Dr To debenture A/c
(b) Debenture allotment A/c Dr to bank a/c
(c) Debenture allotment A/c Dr to debenture A/c
(d) Both (a) and (b)
Ans: (c) Debenture allotment A/c Dr to debenture A/c
(9) When the number of debentures applied for is more than the number of debentures offered to the public, the issue is said to be ——-.
(a) Over subscription
(b) Under subscription
(c) Minimum subscription
(d) Both (a) and (c)
Ans: (a) Over subscription
(10) Redemption of debentures refers to ——.
(a) Discharging the liability of interest payment
(b) Discharging the liability on account of debentures
(c) Discharging of the firm’s outside liabilities
(d) Both (b) and (c)
Ans: (b) Discharging the liability on account of debentures.
(11) The factors taken into consideration by the company at the time of redemption of debentures is/are ——.
(a) Type of debentures to be redeemed
(b) Time of redemption of debentures ‘
(c) Both (b) and (d)
(d) Sources of redemption of debentures
Ans: (c) Both (b) and (d)
(12) The purchasing and cancelling of own debentures by a company from the open market refers to ——-.
(a) Payment of interest on debentures in open market
(b) Redemption of debentures from open market
(c) Repurchasing of debentures from open market
(d) Redemption of debentures in installments
Ans: (b) Redemption of debentures from open market.
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