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 $$1$$st April X Lts. issued Rs$$1,00,000   15\%$$ Debentures of Rs$$10$$ 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 -
  • Rs$$2,400, Rs1,800, Rs 1,200, Rs 600$$
  • $$Rs 1,500, Rs 1,500, Rs 1,350, Rs 1,050, Rs 600$$
  • $$Rs1,200$$ each year
  • None of these
On $$1$$st April X Lts. issued Rs$$1,00,000   15\%$$ Debentures of Rs$$10$$ 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 -
  • Rs$$1,500$$ each year
  • Rs$$1,200$$ each year
  • Rs$$2,000, Rs 1,800, Rs 1,400, Rs 800$$
  • None of these
X.Ltd. issued Rs$$1,00,000$$ $$12\%$$ debentures of Rs$$100$$ 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= ?
  • Rs$$10,000$$
  • Rs$$30,000$$
  • Rs$$20,000$$
  • Rs$$40,000$$
X. Ltd. issued $$500, 15\%$$ Debentures of Rs$$100$$ each at a discount of $$10\%$$ redeemable at a premium of $$5\%$$ after $$4$$ years. The amount of annual interest on Debentures is -
  • Rs$$6,750$$
  • Rs$$7,500$$
  • Rs$$7,875$$
  • Rs$$7,125$$
X Ltd issues $$500, 15\%$$ Debentures of Rs$$100$$ 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-
  • Rs$$1,250$$
  • Rs$$1,875$$
  • Rs$$3,750$$
  • Rs$$5,000$$
'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