Class 12 Accountancy Chapter 2 (Part 2) – Issue and redemption of debentures MCQ Question and Answers – MCQs for Practice

1. Way(s) of Redemption of Debentures

2. 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:

3. Question

4. 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?

5. Which Option is Correct in Purview of Debentures?

6. Discount or Loss on issue of debentures is a ______and is written-off in the year when debentures are issued.

7. Excess value of net assets over purchase consideration at the time of purchase of business is credited to:

8. Interest accrued and due on debentures is shown under which main head?

9. Question

10. 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 Institution

11. 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:

12. When Debentures are issued at a discount, Which Account Is Debited

13. Debentures are Classified Based on What Basis?

14. Profit on cancellation of own debentures is transferred to _____________

15. 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?

16. 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 _____

17. Which of the following statement is false?

18. 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:

19. On payment of tax deducted at source to the Government Which Account is debited ___. (Payment of tax deducted at source on interest on debentures)

20. 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. 10,00,00