MCQ Chapter 2 Issue and Redemption of Debentures Class 12 Accountancy

Please refer to Issue and Redemption of Debentures MCQ Questions Class 12 Accountancy below. These MCQ questions for Class 12 Accountancy with answers have been designed as per the latest NCERT, CBSE books and syllabus issued for the current academic year. These objective questions for Issue and Redemption of Debentures will help you to prepare for the exams and get more marks.

Issue and Redemption of Debentures MCQ Questions Class 12 Accountancy

Please see solved MCQ Questions for Issue and Redemption of Debentures in Class 12 Accountancy. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines.

MCQ Questions Class 12 Accountancy Issue and Redemption of Debentures

Question. Debenture holder are :
A Owner of the company
B lenders of the company
C vendors of the company
D customers of the company

Question. Debentureholder account are :
A Personal
B Real
C Nominal
D None of the above 

Question. At the time of issue of debentures , debentures account is :
A Credited by the amount Received
B Credited by the issue price of the debentures
C Credited by nominal value of the debenture
D none of the above

Question. Return on debenture is called :
A interest
B dividend
C A & B both
D None of the above

Question. The provision of companies act 2013 in respect of redemptions of debentures are to protect the interest of :
A Debenture holders
B Creditors
C ) shareholders
D Bank .

Question.A Ltd decided to redeem 2,000 9% debenture of Rs 100 each on 31st December 2018 , the company should invest in specified securities on or before :
A 30thapril 2017
B 30thapril 2018
C 31st December 2017
D 31st December 2018

 Question. Debentures are shown in the balance sheet of the company under the head of ;
A Non current liabilities
B Current liability
C Share capital
D None of the these

Question. Premium payable on redemption of debentures is in the nature of :
A Liability account
B assets account
C expense account
D none of the above

Question. Perpetual Debenture is the other name of :
A Convertible debentures
B Irredeemable debenture
C Naked debenture
D None of the above

Question.  in case of debenture of RS 10,000 are issued at par but redeemable at a premium of 10% , The premium payable is debited to :
A Debenture suspense account
B Premium on redemption of debentures
C Loss on issue of debentures
D A & B both

Question. ABC Ltd Purchase a machinery worth Rs 1,98,000. The payment made by issue of debenture of Rs 100 each at 10 % Discount in this case no. of debenture will be: 
A 1100
B 2200
C 3300
D 4400

Question.XLtd has purchased the building and debentures are issued at discount which account will be debited for discount :
A Discount on issue of Debentures
B Loss on issue of debenture
C A& B any one can be
D None of the above

Question.Discount or loss of issue of debenture to be written off after 12 months from the date of balance sheet or after the period of operating cycle in shown as :
A Other current assets
B Other non current assets
C Other long term liability
D Other current liabilities

Question.Global Ltd is to redeem 10,000 10% debenture of 100 each on 30thjune 2007 how much amount should be transferred to DRR by :
A 2,50,000
B 1,00,000
C 5,00,000
D Nil

Question.Which of the following do not have voting right in the company :
A Debentureholders
B Shareholders
C Both A & B
D None of these

Question.TP Ltd decided to redeem 1000, 10 % debenture of Rs 100 each redeemable at 10% premium . The company will have to invest in specified securities at least :
A 15000
B 16500
C 25000
D 27500

Question.B Ltd decides to redeem 10,000 10%Debentures of Rs 100 each on 30 Thjune 2017 . The company should invest in specified securities on or before :
A 30th April 2016
B 30th April 2015
C 30th June 2016
D 30th April 2017

Question. A Ltd took over Assets of Rs 5,00,000 and liability of Rs 50,000 from B Ltd in the agreed consideration of Rs 4,80,000 and Issued Debentures of Rs 100 each at the premium of Rs 20 number of Debenture issued are :
A 40,000
B 48,000
C 4,000
D 4,800

Question.  A company issued 1000 7% Debentures of Rs 100 at 5% Discount and Repayable at 10 % Premium .What will be the amount of Loss on issue of Debentures.:
A Rs 10,000
B Rs 20,000
C Rs 15,000
D, Rs 30,000.

Question.State Bank of India redeemed 10,000 5%Debentures of Rs 100 each at 10% premium . What amount will be transferred to debenture redemption reserve :
A Rs 2,50,000
B Rs5,00,000
C Rs 10,00,000
D Nil

Question. United Ltd is to redeem 40,000 10% Debenture of Rs 100 each on 31st December 2017. How much amount should it invest in specified securities :
A Rs 600000
B Rs 1000000
C Rs 500000
D NIL

Question. A Company issued 5,000 12% Debentures of Rs 100 each at 10 % Discount and Repayable at 10 % Premium . Interest on Debentures are payable half yearly on which Tax deducted at source of 10% p.a. what will the amount of tax deduction of a year :
A Rs 3,000
B Rs4,000
C Rs 5,000
D Rs 6,000

Question.A Company issued 1000 7% Debentures of Rs 100 each at 5% Premium and Repayable at 10% Premium. What will be the amount of Loss on issue of Debentures:
A Rs 5,000
B Rs 10,000
C Rs 15,000
D Rs 20,000.

Question. When 100 debenture issued at 5 % discount @ 100 each but redeemable at premium of 8% . How much amount will be credited as premium on redemption of debentures account 
A 5000
B 4000
C 8000
D 6000

Question.A company Redeem 1,000 6% Debentures of Rs 100 each at 10% premium out of profit. What will be amount transferred to Debentures Redemptions reserve:
A Rs 25,000
B Rs 15,000
C Rs 50,000
D Rs 1,00,000

Question. Excess value of net assets over purchase consideration at the time of purchase of business is credited to:
(a) General reserve
(b) Capital reserve
(c) Vendor’s account
(d) Goodwill account.

Question. Debentures that do not carry any charge or security on assets of the company are known as:
(a) secured debentures
(b) unsecured debentures
(c) convertible debentures
(d) registered debentures.

Question. ABC took over the assets of Rs7,60,000 and liabilities of Rs80,000 of Y limited for purchase consideration of Rs5,85,000 payable by the issue of 12% debentures of Rs100 each at a discount of 10%. The number of debentures to be issued is:
(a) 6600
(b) 6500
(c) 4500
(d) 5400.

Question. Debentures which are transferable by mere delivery are
(a) registered debentures
(b) first debentures
(c) bearer debentures
(d) second debentures.

Question. When debentures are issued at par and redeemable and premium the loss on such an issue is debited to:
(a) profit and loss account
(b) debenture application and allotment account
(c) loss on issue of debentures account
(d) discount on issue of debentures account.

Question. A ltd took over the assets of Rs6,60,000 and liabilities of Rs80,000 of B Ltd for an agreed purchase consideration of Rs6,00,000 payable 10% in cash and the balance by issue of 15% debentures of Rs100 each at 10% discount. The number of debentures to be issued is:
(a) 6600
(b) 5400
(c) 6000
(d) 4500

Question. ABC limited issues 10,000 9% debentures of 100 each at a premium of 5% payable at a premium of 10%, the loss on issue of debentures account will be debited to by:
(a) Rs10,00,000
(b) Rs1,00,000
(c) Rs10,50,000
(d) Rs1,05,000

Question. Premium received on issue of debentures may be utilised for writing off:
(a) premium allowed on redemption of debentures
(b) writing off preliminary expenses
(c) writing off discount allowed on issue of shares
(d) all of the above.

Question.A company can issue debentures
(a) for cash
(b) as a collateral security
(c) for consideration other than cash
(d) any of the above.

Question.What is the nature of premium on redemption of debenture account
(a) Real account
(b) nominal account
(c) personal account
(d) none of the above.

Question. XYZ limited issued 4000,12% debentures of Rs100 each at a premium of 5% .the total amount of interest for one year will be:
(a) 48,000
(b) 58,000
(c) 50,000
(d) 50,400.

Question.Debenture is:
(a) written instrument acknowledging a debt written by its holder.
(b) An oral acknowledgement of debt by a company
(c) A written instrument acknowledging a debt written by its company
(d) None of these.

Question.When debentures are issued at discount and redeemable at a premium which one of the following account is debited at the time of issue ?
(a) debentures account
(b) premium on redemption of debentures account
(c) loss on issue of debentures account
(d) none of these.

Question.Interest on debenture is calculated on:
(a) its face value
(b) its issue price
(c) its book value
(d) its cost price.

Question.Debentures issued as collateral security will be______ to debenture suspense account:
(a) debited
(b) credited
(c) sometimes debited and sometimes credited
(d) none of these.

Question.Collateral security means ___________security:
(a) primary
(b) secondary
(c) government
(d) valuable.

Question.When the number of debentures applied is less than number of debentures offered to public the issue is said to be :
(a) oversubscribed
(b) under subscribe
(c) Fully subscribed
(d) none of the above.

Question.Maximum limit on premium on issue of debentures is
(a) 10%
(b) 20%
(c) 15%
(d) no limit.

Question.10% debenture issued at Rs105 is repayable at Rs110, the face value of debenture being Rs100. Calculate the amount of loss on redemption of debentures:
(a) 10
(b) 5
(c) 15
(d) 25

Question. Debenture interest:
(a) is payable only in case of profits
(b) accumulates in case of losses are inadequate profits
(c) is payable irrespective of profit or loss
(d) none of the above.

FILL IN THE BLANKS:

Question.If X ltd purchased plant worth Rs5 lakh from Y ltd but agreed to issue 5250 10% Debentures of Rs100 each to Vendor. The difference in the amount will be adjusted in ____________account.  

Question. __________________Debentures are not secured with a specific asset rather they are secured on all the assets of the company in general.  .

Question. _____________is the rate at which interest is payable on Debentures.    

Question. Interest on debentures is paid on the _____________of Debentures. 

Question. When redemption in out of profit , ______ percent of reedemable debentures are debentures is to be transfer to debenture redemption reserve.

Question. When debentures are repayable after a specific time , it is called ________ of debentures

Question. Debenture holder are the _________ of the company.

Question. After redemption of debentures Debenture Redemption Reserve is transferred to________ account.

Question. From the point of view of security; _______ and ________ are the type of debentures.

Question. Interest on debenture is charge against ________ and is to be paid even if there is no profit in the company.

Question. A debenture is said to be issued at a discount when the issue value is _______ than its nominal value

Question .A collateral security is a _______ security besides the primary security when a company obtains a loan from a Bank or any other financial institution.

Question. __________ Debentures are those which are payable on the expiry of the specific period either in lump sum or in installments’.e

Question. At the time of redemption debenture redemption reserve is compulsory

Question. Debentures can be redeemed at premium

Question. Profit on sale of redemption investment will be transferred to capital reserve

Question. A debenture can get his money back only at the liquidation of the company

Question. Unsecure debentures can be issued in India

Question. Debenture redemption reserved is transferred to capital reserve after redemption

Question. A debenture holders is the owner of the company

Question. Premium on redemption of debenture account is shown under the Security premium in the balance sheet

Question. A debenture is written instrument acknowledging a debt

Question. Debenture include debenture/stock/ bond or another security of company weather constituting a charge an the assets of company or not

Match The Column

1. First stage of company in corporation	a) Capital subscription
2. After getting the name of the proposed company approved	b) Promotion
	c) Commencement of business
	d) Incorporation or registration

1. A Company can issue shares	a) For cash
	b) For considering other than cash
	c) Both (a) and (b)

1. Shares issued at face value	a) At discount
2. Shares issued at more than face value	b) At par
	c) At premium

1. Amount not paid by the shareholder is	a) Calls in arrear
	b) Calls in advance

1. What is the treatment of forfeiture in balance sheet	a) Added
	b) Deducted