CUET 2023 Accountancy Chapter 2 (Part 2) – Issue and redemption of debentures MCQ Question and Answers – MCQs for Practice by Meenu Saini | May 25, 2022 | General | 0 comments Accountancy Chapter 2 (Part 2) – Issue and redemption of debentures MCQ Question Answers for CUET 2023 1. A ______may be defined as a subsidiary or secondary or additional security besides the primary security when a company obtains a loan or overdraft from a bank or any other financial Institutiona.Securities Premiumb.collateral securityc.Shares Loand.Debenture Loan Loading... 2. Profit on cancellation of own debentures is transferred to _____________a.Debenture Redemption Reserveb.Statement of profit and lossc.General Reserve Accountd.Capital reserve. Loading... 3. If Vendors are issued debentures of Rs.4,40,000 in consideration of assets of Rs. 5,00,000 and liabilities of Rs. 1,00,000, the balance of Rs.40,000 will be debited to:a.Capital Reserve Accountb.Statement of Profit & Lossc.Goodwill Accountd.General Reserve Account Loading... 4. Question a.15%b.20%c.25%d.5% Loading... 5. Which of the following statement is false?a.A company can issue redeemable debentures.b.A company can buy its own debentures and sharesc.A company can issue debentures with voting rightsd.A company can issue convertible debentures & Non-Convertible Debentures Loading... 6. When Debentures are issued at a discount, Which Account Is Debiteda.Discount on Issue of Debenture A/cb.Both A and Bc.Vendors A/cd.Debentures A/c Loading... 7. Using Second Method, Which Account Is to debited When Debentures are Issued of 10,000, 9% debentures of Rs. 100 each as collateral security for bank loan of Rs. 10,00,00a.Loan Accountb.Interest On Debentures A/cc.9% Debentures A/cd.Debenture Suspense A/c Loading... 8. When debentures are to be redeemed at premium an extra entry has to be made at the time of issue of debentures, which A/c should be credited in entry?a.Debenture A/cb.Debenture Suspense A/cc.Premium on issue of debentures A/cd.Debenture redemption premium A/c Loading... 9. Wellington Ltd. Bought a Machinery for Rs.5,00,000 payable as 15% in cash and balance by allotment of 9% debentures of Rs.100 each at a premium of 25%. Number of debentures issued will be:a.5,000b.3,400c.4,000d.4,250 Loading... 10. On payment of tax deducted at source to the Government Which Account is debited ___. (Payment of tax deducted at source on interest on debentures)a.Interest A/cb.Income tax Interest Accrued A/cc.Bank A/cd.Income Tax Payable A/c Loading... 11. Rajesh & co. Ltd. purchased assets worth Rs. 28,80,000. It issued debentures of Rs. 100 each at a discount of 4 per cent in full satisfaction of the Purchase Consideration. The number of debentures issued to vendor is:a.320000b.30000c.33000d.35000 Loading... 12. Question a.bb.cc.dd.a Loading... 13. Renegades Ltd. issues 20,000, 9% debentures of Rs.100 each at a discount of 5% redeemable at the end of 5 years at a premium of 6%. For what amount ‘Loss on Issue of Debentures Account’ will be debited?a.220000b.300000c.255000d.222500 Loading... 14. Excess value of net assets over purchase consideration at the time of purchase of business is credited to:a.General reserve,b.Vendors’ accountc.Revaluation Reserved.Capital reserve, Loading... 15. Interest accrued and due on debentures is shown under which main head?a.Current Liabilitiesb.Share Capitalc.Reserves and Surplusd.Non-Current Liabilities Loading... 16. Which Option is Correct in Purview of Debentures?a.A debenture holder received interest only in the event of profitsb.A debenture issued at a discount can be redeemed at a premiumc.A debenture holder can get his money back only on the liquidation of the company.d.A debenture holder is an owner of the company Loading... 17. Discount on issue of debentures to be written off within 12 months of the balance sheet date or the period of operating cycle is shown under _____a.Reserves and Surplusb.Current Assetsc.Other Current Assetsd.Other Current Liabilities Loading... 18. Way(s) of Redemption of Debenturesa.Purchase From Share Marketb.Conversion into Shares or New Debenturesc.Only A and Cd.Payment in Lump sum Loading... 19. Discount or Loss on issue of debentures is a ______and is written-off in the year when debentures are issued.a.Capital Profitb.Capital Lossc.Revenue Lossd.Revenue Expenses Loading... 20. Debentures are Classified Based on What Basis?a.Securityb.Coupon Ratec.Mode Of Redemptiond.All of The Above Loading... Loading... Also See : Accountancy Part 1 Accountancy Chapter 1 (Part 1) – Accounting for share capital MCQs Accountancy Chapter 2 (Part 1) – Accounting for partnership: basic concepts MCQs Accountancy Chapter 3 (Part 1) – Financial statements of a company MCQs Accountancy Chapter 4 (Part 1) – Analysis of financial statements MCQs Accountancy Chapter 5 (Part 1) – Accounting ratios MCQs Accountancy Chapter 6 – Cash flow statement MCQs Accountancy Part 2 Accountancy Chapter 1 (Part 2) – Accounting for not for profit organisation MCQs Accountancy Chapter 3 (Part 2) – Reconstitution of a partnership firm – admission of a partner MCQs Accountancy Chapter 4 (Part 2) – Retirement/death of a partner MCQs Accountancy Chapter 5 (Part 2) – Dissolution of partnership firm MCQs Submit a Comment Cancel replyYou must be logged in to post a comment.