CBSE Class 12 Accountancy Issue and Redemption of Debentures Quiz 3

1. Own debentures are those debentures of the company which ?

A The company allots to its own promotors B The company allots to its directors C The company purchases from the markets and hold them as investments D None of these

2. When debentures are redeemed out of profits, an equivalent amount is transferred to :

A General Reserve B Debenture Redemption Reserve C Capital Reserve D Profit & Loss A/c

3. Profit on sale of debentures redemption fund investment in the first instance in credited to :

A Debenture Redemption Fund A/c B Profit & Loss Appropriation A/c C General Reserve A/c D Sinking Fund A/c

4. When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue ?

A Debentures A/c B Premium on Redemption of Debentures A/c C Loss on Issue of Debentures A/c D Profit & Loss A/c

5. According 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 ?

A 25% B 50% C 100% D zero

6. Profit on redemption of debentures in transferred to which account ?

A Capital Reserve Account B Sinking Gund Account C General Reserve Account D Profit & Loss Account

7. Profit on cancellation of own debentures is :

A Revenue Profit B Capital Profit C Operating Profit D Trading Profit

8. 6,000 debentures of ₹ 10 each where discharged by issuing equity shares of ₹ 10 each at 20% premium. The number of shares issued will be :

A 50,000 B 60,000 C 5,000 D 6,000

9. Every 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…………of the amount of its debentures maturing (to be redeemed) during the year ending on 31st March of the next year.)

A 10% B 15% C 25% D 50%

10. A Sinking Fund is a part of:

A Fixed Liabilities B Current Liabilities C Reserves and Surplus D Fixed Assets