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e={width:this.$container.outerWidth(!1)+"px"};this.options.get("dropdownAutoWidth")&&(e.minWidth=e.width,e.position="relative",e.width="auto"),this.$dropdown.css(e)},e.prototype._showDropdown=function(e){this.$dropdownContainer.appendTo(this.$dropdownParent),this._positionDropdown(),this._resizeDropdown()},e}),u.define("select2/dropdown/minimumResultsForSearch",[],function(){function e(e,t,n,s){this.minimumResultsForSearch=n.get("minimumResultsForSearch"),this.minimumResultsForSearch<0&&(this.minimumResultsForSearch=1/0),e.call(this,t,n,s)}return e.prototype.showSearch=function(e,t){return!(function e(t){for(var n=0,s=0;s');return e.attr("dir",this.options.get("dir")),this.$container=e,this.$container[0].classList.add("select2-container--"+this.options.get("theme")),r.StoreData(e[0],"element",this.$element),e},o}),u.define("jquery-mousewheel",["jquery"],function(e){return e}),u.define("jquery.select2",["jquery","jquery-mousewheel","./select2/core","./select2/defaults","./select2/utils"],function(i,e,r,t,o){var a;return null==i.fn.select2&&(a=["open","close","destroy"],i.fn.select2=function(t){if("object"==typeof(t=t||{}))return this.each(function(){var e=i.extend(!0,{},t);new r(i(this),e)}),this;if("string"!=typeof t)throw new Error("Invalid arguments for Select2: "+t);var n,s=Array.prototype.slice.call(arguments,1);return this.each(function(){var e=o.GetData(this,"select2");null==e&&window.console&&console.error&&console.error("The select2('"+t+"') method was called on an element that is not using Select2."),n=e[t].apply(e,s)}),-1Bihar Board 12th Accountancy Objective Questions and Answers<\/p>\nBihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/h2>\n
\nFree PDF Download of BSEB<\/a>\/ CBSE Business Studies Multiple Choice Questions for Class 12 with Answers Chapter 2 Principles of Management. Business Studies MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Business Studies Principles of Management MCQs Pdf with Answers to know their preparation level. Also Class 10 Click Here<\/a><\/p>\nQuestion 1.
\nDebenture is a :
\n(A) Loan certificate
\n(B) Cash certificate
\n(C) Credit certificate
\n(D) None of these
\nAnswer:
\n(A) Loan certificate<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 2.
\nDebentureholders are the :
\n(A) Customers of the Company
\n(B) Owners of the Company
\n(C) Creditors of the Company
\n(D) None of these
\nAnswer:
\n(C) Creditors of the Company<\/p>\n
Question 3.
\nIn case of issue of debentures as a collateral security for loan from the bank which account will be debited :
\n(A) Bank Account
\n(B) Bank Loan Account
\n(C) Debentures Account
\n(D) Debentures Suspense Account
\nAnswer:
\n(D) Debentures Suspense Account<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 4.
\nIf debentures of \u20b9 4,50,000 are issued for the consideration of net assets of \u20b9 5,00,000 balance \u20b9 50,000 will be credited to:
\n(A) Profit & Loss A\/c
\n(B) Goodwill A\/c
\n(C) General Reserve A\/c
\n(D) Capital Reserve A\/c
\nAnswer:
\n(D) Capital Reserve A\/c<\/p>\n
Question 5.
\nDebentures which are transferred by mere delivery are called:
\n(A) Registered Debentures
\n(B) First Debentures
\n(C) Bearer Debentures
\n(D) None of these
\nAnswer:
\n(C) Bearer Debentures<\/p>\n
Question 6.
\nIn the Balance Sheet of a Company, Debentures are shown under the head :
\n(A) Unsecured Loans
\n(B) Long-term Loans
\n(C) Current Liabilities
\n(D) Reserve and Surplus
\nAnswer:
\n(B) Long-term Loans<\/p>\n
Question 7.
\nDiscount on issue of Debetures is in the nature of:
\n(A) Revenue Loss
\n(B) Capital Loss
\n(C) Deferred Revenue Expediture
\n(D) None of there
\nAnswer:
\n(B) Capital Loss<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 8.
\nOn liquidation of a company, principal amount of debentures is returned:
\n(A) First of all
\n(B) Last of all
\n(C) Before Equity Capital
\n(D) None of those
\nAnswer:
\n(A) First of all<\/p>\n
Question 9.
\nInterest payable on debentures is :
\n(A) An appropriation of profits of the company
\n(B) A charge against profits of the company
\n(C) Transfer to Sinking Fund
\n(D) None of the above
\nAnswer:
\n(B) A charge against profits of the company<\/p>\n
Question 10.
\nDebentures cannot be redeemed at:
\n(A) Premium
\n(B) Discount
\n(C) Par
\n(D) None of these
\nAnswer:
\n(B) Discount<\/p>\n
<\/p>\n
Question 11.
\nDebentures represent:
\n(A) Director\u2019s Share in a Company
\n(B) Investments by Equity Shareholders
\n(C) Long-term Debt of the Business
\n(D) None of these
\nAnswer:
\n(C) Long-term Debt of the Business<\/p>\n
Question 12.
\nDebentures carries interest at: .
\n(A) 12% p.a.
\n(B) Fixed Rate
\n(C) 20% p.a.
\n(D) 6% p.a.
\nAnswer:
\n(B) Fixed Rate<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 13.
\nGenerally debentures are :
\n(A) Secured
\n(B) Unsecured
\n(C) Partly Secured
\n(D) None of these
\nAnswer:
\n(A) Secured<\/p>\n
Question 14.
\nPremium on issue of debentures is a for Company :
\n(A) Revenue Receipt
\n(B) Profit
\n(C) Capital Receipt
\n(D) All of these
\nAnswer:
\n(C) Capital Receipt<\/p>\n
Question 15.
\nFor a company discount on issue of debentures is :
\n(A) Capital Loss
\n(B) Revenue Loss
\n(C) General Loss
\n(D) None of these
\nAnswer:
\n(A) Capital Loss<\/p>\n
Question 16.
\n\u2018Premimum on issue of debentures\u2019 is shown in the Balance Sheet on:
\n(A) Assets side
\n(B) Liabilities side
\n(C) None of these
\n(D) All of these
\nAnswer:
\n(B) Liabilities side<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 17.
\nThe balance of discount on debentures is shown in the Balance Sheet on:
\n(A) Assets side
\n(B) Liabilities side
\n(C) None of these
\n(D) All of these
\nAnswer:
\n(A) Assets side<\/p>\n
Question 18.
\nRate of interest on debentures is :
\n(A) 12% p.a.
\n(B) 20% p.a.
\n(C) Fixed Rate
\n(D) 15% p.a.
\nAnswer:
\n(C) Fixed Rate<\/p>\n
Question 19.
\nDiscount on issue of Debentures should be written off:
\n(A) Out of Securities Premium Account
\n(B) Out of Capital Profits
\n(C) Out of Statements of Profit and Loss
\n(D) In the above order over the period of debentures
\nAnswer:
\n(D) In the above order over the period of debentures<\/p>\n
Question 20.
\nF Ltd. purchased machinery for a book value of \u20b9 4,00,000. The consideration was paid by issue of 10% Debentures of \u20b9 100 each at a discount of 20%. The Debenture Account will be credited by :
\n(A) \u20b9 4,00,000
\n(B) \u20b9 5,00,000
\n(C) \u20b9 3,20,000
\n(D) \u20b9 4,80,000
\nAnswer:
\n(B) \u20b9 5,00,000<\/p>\n
Question 21.
\nDebentureholdergets:
\n(A) Di vidend
\n(B) Profit
\n(C) Interest
\n(D) Interest at fixed rate
\nAnswer:
\n(C) Interest<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
<\/p>\n
Question 22.
\nLoss on issue of debentures is generally written off in :
\n(A) 5 years
\n(B) 10 years
\n(C) 15 years
\n(D) Over the period of redemption
\nAnswer:
\n(D) Over the period of redemption<\/p>\n
Question 23.
\nWhen debentures are issued as collateral security, \u201e which entry has to be passed ?
\n(A) Debenture Suspense A\/c Dr.
\nTo Debentures
\n(B) No entry has to be made
\n(C) (a) or (b)
\n(D) None of these
\nAnswer:
\n(C) (a) or (b)<\/p>\n
Question 24.
\nDebentureholder receives:
\n(A) Dividend
\n(B) Interest
\n(C) Both Dividend and Interest
\n(D) Bonus
\nAnswer:
\n(B) Interest<\/p>\n
Question 25.
\nDebentureholders are called of the company.
\n(A) Creditors
\n(B) Debtors
\n(C) Owners
\n(D) Bankers
\nAnswer:
\n(A) Creditors<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 26.
\nA company issued \u20b9 1,00,000 12% debentures of \u20b9 100 each. The amount of interest on debentures will be:
\n(A) \u20b9 12,000
\n(B) \u20b9 1,20,000
\n(C) \u20b9 12,00,000
\n(D) None of these
\nAnswer:
\n(C) \u20b9 12,00,000<\/p>\n
Question 27.
\nPremium on redemption of debentures account is :
\n(A) A real account
\n(B) A nominal account
\n(C) A personal account
\n(D) None of these
\nAnswer:
\n(C) A personal account<\/p>\n
Question 28.
\nDebenture premium can be used to :
\n(A) Write off the discount on issue of shares or debentures
\n(B) Write off the premium on redemption of shares or debentures
\n(C) Write off capital loss
\n(D) All of the above
\nAnswer:
\n(D) All of the above<\/p>\n
Question 29.
\nWhich of the following is false ?
\n(A) A company can issue redeemable debentures
\n(B) A company can issue debentures with voting rights
\n(C) A company can buy its own shares
\n(D) A company can buy its own debentures
\nAnswer:
\n(B) A company can issue debentures with voting rights<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 30.
\nDebenture is the part of:
\n(A) Share Capital
\n(B) Long-term Borrowings
\n(C) Owned Capital
\n(D) None, of these
\nAnswer:
\n(B) Long-term Borrowings<\/p>\n
Question 31.
\nConsideration of Debenture is:
\n(A) Profit
\n(B) Dividend
\n(C) Interest
\n(D) None of these
\nAnswer:
\n(C) Interest<\/p>\n
Question 32.
\nPremium on Redemption of Debenture A\/c is.:
\n(A) Asset
\n(B) Liability
\n(C) Expense
\n(D) Revenue
\nAnswer:
\n(B) Liability<\/p>\n
Question 33.
\nDebenture is a :
\n(A) Loan Certificate
\n(B) Cash Certificate
\n(C) Credit Certificate
\n(D) None of these
\nAnswer:
\n(A) Loan Certificate<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
<\/p>\n
Question 34.
\nLoss on issue of debentures is recorded as :
\n(A) Intangible Asset
\n(B) Current Asset
\n(C) Current Liability
\n(D) Miscellaneous Expenditure
\nAnswer:
\n(D) Miscellaneous Expenditure<\/p>\n
Question 35.
\nWhen all debentures are redeemed, balance in the Debenture Redemption Fund Account is transferred to:
\n(A) Capital Reserve
\n(B) General Reserve
\n(C) Profit & Loss Appropriation A\/c
\n(D) None of these
\nAnswer:
\n(A) Capital Reserve<\/p>\n
Question 36.
\nAccording to SEBI guidelines, a Company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued:
\n(A) 50%
\n(B) 25%
\n(C) 70%
\n(D) 100%
\nAnswer:
\n(B) 25%<\/p>\n
Question 37.
\nThe balance of \u2018Sinking Fund Account\u2019 after the redemption of debentures is transferred to :
\n(A) Profit & Loss Account
\n(B) Profit & Loss Appropriation Account
\n(C) General Reserve Account
\n(D) Sinking Fund Account
\nAnswer:
\n(C) General Reserve Account<\/p>\n
Question 38.
\nProfit on cancellation of own debentures is transferred to:
\n(A) Profit & Loss Account
\n(B) Profit & Loss Appropriation Account
\n(C) General Reserve Account
\n(D) Capital Reserve Account
\nAnswer:
\n(D) Capital Reserve Account<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 39.
\nIf debenture of \u20b9 1,00,000 were issued for discount of \u20b9 10,000, which are redeemable after four years. Then amount of discount to be written off from P. & L. Account each year is :
\n(A) \u20b9 3,000
\n(B) \u20b9 4,000
\n(C) \u20b9 2,500
\n(D) \u20b9 5,000
\nAnswer:
\n(C) \u20b9 2,500<\/p>\n
Question 40.
\nDebentures can be redeemed out of:
\n(A) Profit
\n(B) Capital
\n(C) Provision
\n(D) All of the above
\nAnswer:
\n(D) All of the above<\/p>\n
Question 41.
\nPremium on redemption of debentures is a :
\n(A) Personal A\/c
\n(B) Real A\/c
\n(C) Nominal A\/c
\n(D) Suspense A\/c
\nAnswer:
\n(C) Nominal A\/c<\/p>\n
Question 42.
\nPremium on redemption of debentures is genertally provided at the time of \u2026\u2026\u2026\u2026\u2026
\n(A) Issue of debentures
\n(B) Redemption of debentures
\n(C) Writing off
\n(D) After 10 years
\nAnswer:
\n(B) Redemption of debentures<\/p>\n
Question 43.
\nDebentures cannot be redeemed at:
\n(A) Par
\n(B) Premium
\n(C) Discount
\n(D) More than 10% premium
\nAnswer:
\n(C) Discount<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 44.
\nIf debentures purchased in open market are not immediately cancalled, they are treated as :
\n(A) Current Assets
\n(B) Current Liabilities
\n(C) Investment
\n(D) Capital
\nAnswer:
\n(C) Investment<\/p>\n
Question 45.
\nSources of finance of the redemption of debentures are:
\n(A) Redemption out of profits
\n(B) Redemption out of capital
\n(C) The proceeds from fresh issue of shares\/debentures
\n(D) All the above
\nAnswer:
\n(D) All the above<\/p>\n
Question 46.
\nA company issued 1,000,12% debentures of \u20b9 100 each at 10% premium. 12% stand for:
\n(A) Rate of dividend
\n(B) Rate of Tax
\n(C) Rate of interest
\n(D) None of these
\nAnswer:
\n(C) Rate of interest<\/p>\n
Question 47.
\nA company should transfer to Debenture Redemption Reserve A\/c at least what percent of the amount of debentures issued before the commencement of redemption of debentries-
\n(A) 50%
\n(B) 25%
\n(C) 15%
\n(D) 100%
\nAnswer:
\n(B) 25%<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 48.
\nIf redemption of debentures is made by conversion method, the amount to be transferred to \u2018Debenture Redemption Reserve Account\u2019 will be equal to\u2026\u2026.percent of converted amounted.
\n(A) 40
\n(B) 50
\n(C) 60
\n(D) Not required
\nAnswer:
\n(D) Not required<\/p>\n
Question 49.
\nLoss on Issue of Debenture Account is shown:
\n(A) On Assets side of Balance Sheet
\n(B) On Liabilities side of Balance Sheet
\n(C) On Credit side of P & L Account
\n(D) None of these
\nAnswer:
\n(A) On Assets side of Balance Sheet<\/p>\n
Question 50.
\nProfit on sale of Sinking Fund Investment is transferred to:
\n(A) Profit & Loss Account
\n(B) General Reserve
\n(C) Sinking Fund Account
\n(D) Capital Reserve
\nAnswer:
\n(C) Sinking Fund Account<\/p>\n
Question 51.
\nPremium on Redemption of Debentures A\/c is:
\n(A) Asset
\n(B) Expenses
\n(C) Liability
\n(D) Revenue
\nAnswer:
\n(C) Liability<\/p>\n
Question 52.
\nInterest on sinking fund investment is credited to :
\n(A) Profit & Loss A\/c
\n(B) Sinking Fund A\/c
\n(C) General Reserve A\/c
\n(D) Sinking Fund Investment A\/c
\nAnswer:
\n(B) Sinking Fund A\/c<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
<\/p>\n
Question 53.
\nSinking fund investment is:
\n(A) An Income
\n(B) An exause
\n(C) An Asset
\n(D) A Liability
\nAnswer:
\n(C) An Asset<\/p>\n
Question 54.
\nWhen debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to :
\n(A) Profit & Loss A\/c
\n(B) Debenture Application and Allotment A\/c
\n(C) Loss on Issue of Debentures A\/c
\n(D) Premium on Redemption A\/c
\nAnswer:
\n(C) Loss on Issue of Debentures A\/c<\/p>\n
Question 55.
\nOwn debentures are those debentures of the company which ?
\n(A) The company allots to its own promotors
\n(B) The company allots to its directors
\n(C) The company purchases from the markets and hold them as investments
\n(D) None of these
\nAnswer:
\n(C) The company purchases from the markets and hold them as investments<\/p>\n
Question 56.
\nWhen debentures are redeemed out of profits, an equivalent amount is transferred to :
\n(A) General Reserve
\n(B) Debenture Redemption Reserve
\n(C) Capital Reserve
\n(D) Profit & Loss A\/c
\nAnswer:
\n(B) Debenture Redemption Reserve<\/p>\n
Question 57.
\nProfit on sale of debentures redemption fund investment in the first instance in credited to :
\n(A) Debenture Redemption Fund A\/c
\n(B) Profit & Loss Appropriation A\/c
\n(C) General Reserve A\/c
\n(D) Sinking Fund A\/c
\nAnswer:
\n(A) Debenture Redemption Fund A\/c<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 58.
\nWhen debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue ?
\n(A) Debentures A\/c
\n(B) Premium on Redemption of Debentures A\/c
\n(C) Loss on Issue of Debentures A\/c
\n(D) Profit & Loss A\/c
\nAnswer:
\n(C) Loss on Issue of Debentures A\/c<\/p>\n
Question 59.
\nAccording to SEBI guidelines what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redumption of debentures, in case of convertible debentures ?
\n(A) 25%
\n(B) 50%
\n(C)100%
\n(D) zero
\nAnswer:
\n(D) zero<\/p>\n
Question 60.
\nProfit on redemption of debentures in transferred to which account ?
\n(A) Capital Reserve Account
\n(B) Sinking Gund Account
\n(C) General Reserve Account
\n(D) Profit & Loss Account
\nAnswer:
\n(A) Capital Reserve Account<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 61.
\nProfit on cancellation of own debentures is :
\n(A) Revenue Profit
\n(B) Capital Profit
\n(C) Operating Profit
\n(D) Trading Profit
\nAnswer:
\n(B) Capital Profit<\/p>\n
Question 62.
\n6,000 debentures of \u20b9 10 each where discharged by issuing equity shares of \u20b9 10 each at 20% premium. The number of shares issued will be :
\n(A) 50,000
\n(B) 60,000
\n(C) 5,000
\n(D) 6,000
\nAnswer:
\n(C) 5,000<\/p>\n
Question 63.
\nEvery company required to create DRR shall on or before the 30th April of each year, deposit or invest, a sum which shall not be less than\u2026\u2026\u2026\u2026of the amount of its debentures maturing (to be redeemed) during the year ending on 31st March of the next year.)
\n(A) 10%
\n(B) 15%
\n(C) 25%
\n(D) 50%
\nAnswer:
\n(B) 15%<\/p>\n
Question 64.
\nA Sinking Fund is a part of:
\n(A) Fixed Liabilities
\n(B) Current Liabilities
\n(C) Reserves and Surplus
\n(D) Fixed Assets
\nAnswer:
\n(C) Reserves and Surplus<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 65.
\nA company issued 1000,12% debentures of\u20b9 100 each at 10% premium. 12% stand for :
\n(A) Rate of Dividend
\n(B) Rate of Tax
\n(C) Rate of Interest
\n(D) None of these
\nAnswer:
\n(C) Rate of Interest<\/p>\n
Question 66.
\nBST Ltd. want to redeem its 900,10% debentures at 105% by converting them into shares of \u20b9 10 each at \u20b9 9 each. The number of shares to be issued will be :
\n(A) 9,000 Shares
\n(B) 10,500 Shares
\n(C) 10,000 Shares
\n(D) 8,500 Shares
\nAnswer:
\n(B) 10,500 Shares<\/p>\n
Question 67.
\n\u2018Premium on Redemption of Debentures A\/c is in the nature of:
\n(A) Personal A\/c
\n(B) Real A\/c
\n(C) Nominal A\/c
\n(D) None of these
\nAnswer:
\n(C) Nominal A\/c<\/p>\n
Bihar Board 12th Accountancy Objective New MCQ Question of Issue and Redemption of Debentures<\/p>\n
Question 68.
\nDeep Ltd. issue 10,00,000,7 % debenturesw of 100 Rs. each at a discount of 4%, redeemable after 5 years at a premium of 6%. Loss issue of debentures is :
\n(A) \u20b9 10,00,000
\n(B) \u20b9 6,00,000
\n(C) \u20b9 16,00,000
\n(D) \u20b9 4,00,000
\nAnswer:
\n(A) \u20b9 10,00,000<\/p>\n
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