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CBSE Questions for Class 12 Commerce Accountancy Issue And Redemption Of Debentures Quiz 1 - MCQExams.com

Debenture Premium Account is a -
  • Personal Account
  • Real Account
  • Nominal Account
  • None of these
From the point of view of tenure, the debentures are classified as -
  • Secured and unsecured Debentures
  • Redeemable Debentures and Irredeemable Debentures
  • Convertible Debentures and Non-convertible Debentures
  • Registered Debentures and Bearer Debentures
On 1st April X Lts. issued Rs1,00,00015% Debentures of Rs10 each at 94% redeemable at per as follows:

YearendNominal value of Total Debentures to redeemed
210%
320%
430%
540%
The amount of discount to be written off each year assuming that the company closes its accounts on financial year basis is -
  • Rs2,400,Rs1,800,Rs1,200,Rs600
  • Rs1,500,Rs1,500,Rs1,350,Rs1,050,Rs600
  • Rs1,200 each year
  • None of these
On 1st April X Lts. issued Rs1,00,00015% Debentures of Rs10 each at 94% redeemable at per as follows:

Year beginningNominal value of Total Debentures to redeemed
210%
320%
430%
540%
The amount of discount to be written off each year assuming that the company closes its accounts on financial year basis is -
  • Rs1,500 each year
  • Rs1,200 each year
  • Rs2,000,Rs1,800,Rs1,400,Rs800
  • None of these
X.Ltd. issued Rs1,00,000 12% debentures of Rs100 each at a premium of 10%, which are redeemable after 10 years at a premium of  The amount of loss on redemption of debentures to be written off every year= ?
  • Rs10,000
  • Rs30,000
  • Rs20,000
  • Rs40,000
X. Ltd. issued 500,15% Debentures of Rs100 each at a discount of 10% redeemable at a premium of 5% after 4 years. The amount of annual interest on Debentures is -
  • Rs6,750
  • Rs7,500
  • Rs7,875
  • Rs7,125
X Ltd issues 500,15% Debentures of Rs100 each on 1st May at a discount of 10% redeemable at a premium of 5% after 4 years. Interest was payable half yearly on 30th June and 31st December. The amount of interest accrued but not due to be shown in the balance sheet as at 31st March is-
  • Rs1,250
  • Rs1,875
  • Rs3,750
  • Rs5,000
'Premium on Redemption of Debentures Account' is a:
  • Personal Account
  • Real Account
  • Nominal Account
  • None of the above
Withdrawal from DRR is permissible only after ____% of the debenture liability has been redeemed.
  • 30
  • 40
  • 10
  • 25
A price exclusive of the interest for the period for which the seller held the debentures is called _________________.
  • Ex-interest price
  • Cum-interest price
  • Plus-interest price
  • Additional-interest price
Whenever debentures are cancelled any profit on cancellation is transferred to ___________________.
  • Profit & loss account
  • General reserve account
  • Capital redemption reserve account
  • Capital reserve account
As per SEBI Guidelines Debenture Redemption reserve is required to be created in case the company issue debentures with a maturity of __________.
  • more than 18 months
  • 2 years
  • 10 years
  • 5 years
When debentures are redeemed out of profits the accounting entry for redemption is:
  • Debenture account 
    Bank Account    		Dr.
     
    Cr.
  • Debenture account 
    Profit and loss appropriation account    		Dr.
     
    Cr.
  • Debenture account 
    Debentures redemption reserve account    		Dr.
     
    Cr.
  • Debenture Account 
    General Reserve    		Dr.
     
    Cr.
Manoj Industries issued 10,000.15% debentures of Rs. 100 each at 10% premium but redeemed at par. How would you journalise the transaction ?
  • Bank A/c Dr. Rs. 1100000, Credit 15% Debentures A / c Rs. 10,00,000, Premium on issue of Debenture A/c Rs. 100,000
  • Bank A/c Dr. Rs. 10,00,000, Credit 15% Debentures A/c Rs. 900,000, Premium on issue of Debenture A/c Rs. 100,000
  • Bank A/c Dr. Rs. 880,000, Credit 15% Debentures A/c Rs. 880,000
  • Bank A/c Dr. Rs. 880,000, Premium on issue of Debenture Rs. 80,000, Credit 15% Debentures A/c Rs. 800,000, Premium on issue of Debenture A/c Rs. 80,000
Which of these is not a method of redemption of debentures ?
  • Purchase in open market
  • Auction of debentures
  • Drawing of lots
  • Payment in lump sum
Murlidhar Industries issued 10,000.10% debentures of Rs. 100 each at 10% discount and redeemable at 10% premium. What is the required journal entry?
  • Dr. Bank A/c Rs. 900,000, Discount on issue Debenture A/c Rs. 80,000, Cr. Debenture A/c Rs. 800,000, Premium of Redemption of Debenture A/c Rs. 80,000
  • Dr. Bank A/c Rs. 1000,000, Loss on redemption of debenture Rs. 80,000, Cr. Debenture A/c Rs. 10,00,000, Loss on issue of Debenture A/c Rs. 80,000
  • Dr. Bank A/c Rs. 900,000, Discount on issue Debenture A/c Rs. 100,000, Loss on Redemption of Debenture A/c Rs. 100,000 Cr. Debenture A/c Rs. 10,00,000, Premium of Redemption of Debenture A/c Rs. 100,000
  • Dr. Bank A/c Rs. 800,000, Loss on redemption of debenture Rs. 80,000, Cr. Debenture A/c Rs. 800,000, Loss on issue of Debenture A/c Rs. 80,000
Company should created DRR equivalent to _____% of the amount of debenture issue before redemption of debenture can commence.
  • 75
  • 40
  • 50
  • 25
Preference shares may be redeemed out of________________.
  • Proceeds of Debentures
  • Proceeds of new issue of shares
  • Out of divisible profits
  • Both (b) and (c)
Which of the following accounts can be transferred to capital redemption reserve account?
  • General reserve account
  • Forfeited shares account
  • Profit prior to incorporation
  • Share premium account
When Debentures are issued which are redeemable at a premium, the amount of premium payable on redemption is?
  • Capital loss
  • Revenue loss
  • Deferred Revenue loss
  • Revenue profit
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Practice Class 12 Commerce Accountancy Quiz Questions and Answers