NCERT Class 12 Accountancy MCQ Chapter 6 Issue and Redemption of Debentures Solutions, AHSEC Class 12 Accountancy Multiple Choice Question Answer to each chapter is provided in the list so that you can easily browse throughout different chapters NCERT Class 12 Accountancy MCQ Chapter 6 Issue and Redemption of Debentures Question Answer and select needs one.
NCERT Class 12 Accountancy MCQ Chapter 6 Issue and Redemption of Debentures
Also, you can read the SCERT book online in these sections NCERT Class 12 Accountancy Multiple Choice Solutions by Expert Teachers as per SCERT (CBSE) Book guidelines. AHSEC Class 12 Accountancy MCQ Solutions. These solutions are part of SCERT All Subject Solutions. Here we have given HS 2nd Year Accountancy Objective Type Question Answer for All Subjects, You can practice these here.
Issue and Redemption of Debentures
Chapter: 6
| PART – ⅠⅠ |
MULTIPLE CHOICE QUESTION ANSWER
1. Which of the following is NOT a method of issuing debentures?
(i) Private placement.
(ii) Public offering.
(iii) Exchange for equity.
(iv) Direct subscription.
Ans: (iii) Exchange for equity.
2. What is the accounting treatment when debentures are issued at a discount?
(i) The discount is debited to the Debenture Account.
(ii) The discount is credited to the Debenture Premium Account.
(iii) The discount is debited to the Discount on Issue of Debenture Account.
(iv) The discount is debited to the Share Capital Account.
Ans: (iii) The discount is debited to the Discount on Issue of Debenture Account.
3. The term ‘debenture’ is derived from which Latin word?
(i) Debere.
(ii) Debenture.
(iii) Debitum.
(iv) Debito.
Ans: (i) Debere.
4. Which Act defines ‘debenture’ in India?
(i) The Companies Act, 1956.
(ii) The Debenture Act, 2005.
(iii) The Companies Act, 2013.
(iv) The Securities Act, 2012.
Ans: (iii) The Companies Act, 2013.
5. What is a bond?
(i) A type of equity share.
(ii) An instrument of acknowledgment of debt.
(iii) A document for government grants.
(iv) A share in company profits.
Ans: (ii) An instrument of acknowledgment of debt.
6. Who traditionally issued bonds?
(i) Private companies.
(ii) Semi-government organizations.
(iii) Non-governmental organizations.
(iv) The Government.
Ans: (iv) The Government.
7. What is the return on debentures called?
(i) Dividend.
(ii) Profit.
(iii) Interest.
(iv) Capital gain.
Ans: (iii) Interest.
8. What are secured debentures?
(i) Debentures with no charge on the company’s assets.
(ii) Debentures with a charge on the company’s assets in case of default.
(iii) Debentures with guaranteed repayment from shareholders.
(iv) Debentures issued only for short-term financing.
Ans: (ii) Debentures with a charge on the company’s assets in case of default.
9. What type of charge is created on specific assets for secured debentures?
(i) Floating charge.
(ii) General charge.
(iii) Fixed charge.
(iv) Contingent charge.
Ans: (iii) Fixed charge.
10. Which type of debentures typically do NOT have a specific charge on the company’s assets?
(i) Secured debentures.
(ii) Convertible debentures.
(iii) Unsecured debentures.
(iv) Redeemable debentures.
Ans: (iii) Unsecured debentures.
11. A company issued 1,000 debentures of ₹100 each at a discount of 10%. The total amount received on the issue of these debentures is:
(i) ₹1,00,000
(ii) ₹90,000
(iii) ₹1,10,000
(iv) ₹80,000
Ans: (ii) ₹90,000
12. The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to:
(i) Profit & Loss Account.
(ii) Profit & Loss Appropriation Account.
(iii) General Reserve Account.
(iv) Sinking Fund Account.
Ans: (ii) Profit & Loss Appropriation Account.
13. A company issued 500 debentures of ₹1,000 each payable as ₹400 on application, ₹300 on allotment, and ₹300 on the first and final call. How much is received at the time of allotment?
(i) ₹2,00,000
(ii) ₹1,50,000
(iii) ₹3,00,000
(iv) ₹50,000
Ans: (ii) ₹1,50,000
14. Premium on redemption of debentures is a:
(i) Personal A/c.
(ii) Real A/c.
(iii) Nominal A/c.
(iv) Suspense A/c.
Ans: (iii) Nominal A/c.
15. Which account is debited when debentures are issued at a discount?
(i) Bank Account.
(ii) Debenture Discount Account.
(iii) Debenture Premium Account.
(iv) Share Capital Account.
Ans: (ii) Debenture Discount Account.
