CBSE  /  Class 12  /  Accountancy  /  Issue and Redemption of Debentures

  • 1. 
    When all debentures are redeemed, balance in the Debenture Redemption Fund Account is transferred to:

  • Capital Reserve
  • General Reserve
  • Profit & Loss Appropriation A/c
  • None of these

  • 2. 
    According to SEBI guidelines, a Company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued:

  • 50%
  • 25%
  • 70%
  • 100%

  • 3. 
    The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to :

  • Profit & Loss Account
  • Profit & Loss Appropriation Account
  • General Reserve Account
  • Sinking Fund Account

  • 4. 
    Profit on cancellation of own debentures is transferred to:

  • Profit & Loss Account
  • Profit & Loss Appropriation Account
  • General Reserve Account
  • Capital Reserve Account

  • 5. 
    If debenture of ₹ 1,00,000 were issued for discount of ₹ 10,000, which are redeemable after four years. Then amount of discount to be written off from P. & L. Account each year is :

  • ₹ 3,000
  • ₹ 4,000
  • ₹ 2,500
  • ₹ 5,000

  • 6. 
    Debentures can be redeemed out of:

  • Profit
  • Capital
  • Provision
  • All of the above

  • 7. 
    Premium on redemption of debentures is a :

  • Personal A/c
  • Real A/c
  • Nominal A/c
  • Suspense A/c

  • 8. 
    Premium on redemption of debentures is generally provided at the time of ……………

  • Issue of debentures
  • Redemption of debentures
  • Writing off
  • After 10 years

  • 9. 
    Debentures cannot be redeemed at:

  • Par
  • Premium
  • Discount
  • More than 10% premium

  • 10. 
    If debentures purchased in open market are not immediately cancelled, they are treated as :

  • Current Assets
  • Current Liabilities
  • Investment
  • Capital
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