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

  • 1. 
    The balance of discount on debentures is shown in the Balance Sheet on:

  • Assets side
  • Liabilities side
  • None of these
  • All of these

  • 2. 
    Rate of interest on debentures is :

  • 12% p.a.
  • 20% p.a.
  • Fixed Rate
  • 15% p.a.

  • 3. 
    Discount on issue of Debentures should be written off:

  • Out of Securities Premium Account
  • Out of Capital Profits
  • Out of Statements of Profit and Loss
  • In the above order over the period of debentures

  • 4. 
    F Ltd. purchased machinery for a book value of ₹ 4,00,000. The consideration was paid by issue of 10% Debentures of ₹ 100 each at a discount of 20%. The Debenture Account will be credited by :

  • ₹ 4,00,000
  • ₹ 5,00,000
  • ₹ 3,20,000
  • ₹ 4,80,000

  • 5. 
    Debenture holder gets:

  • Di vidend
  • Profit
  • Interest
  • Interest at fixed rate

  • 6. 
    Loss on issue of debentures is generally written off in :

  • 5 years
  • 10 years
  • 15 years
  • Over the period of redemption

  • 7. 
    When debentures are issued as collateral security, which entry has to be passed ?

  • Debenture Suspense A/c Dr. To Debentures
  • No entry has to be made
  • (a) or (b)
  • None of these

  • 8. 
    Debenture holder receives:

  • Dividend
  • Interest
  • Both Dividend and Interest
  • Bonus

  • 9. 
    Debenture holders are called of the company.

  • Creditors
  • Debtors
  • Owners
  • Bankers

  • 10. 
    A company issued ₹ 1,00,000 12% debentures of ₹ 100 each. The amount of interest on debentures will be:

  • ₹ 12,000
  • ₹ 1,20,000
  • ₹ 12,00,000
  • None of these
Report Question
warning
Practice More On Issue and Redemption of Debentures
Quiz 1 Quiz 2 Quiz 3 Quiz 4 Quiz 5 Quiz 6 Quiz 7
access_time
  Time