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Free Online MCQs for Class – 12 Accountancy Chapter 9 – Redemption of Debentures

Free Online MCQs Questions of CBSE Class – 12 Accountancy Chapter 9 – Redemption of Debentures with Answers. Free Online MCQs Questions for Class 12 Accountancy with Answers was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Accountancy Class – 12 Accountancy Chapter 9 – Redemption of Debentures Multiple Choice Questions with Answers to know their preparation level on Success Roar Classes Website itself.

Free Online MCQs for Class -12 Accountancy

Chapter 9 – Redemption of Debentures with Answers

  1. As per SEBI Guidelines an amount equal to ………………….. of the debenture issue must be transferred to Debenture Redemption Reserve before redemption begins.
    1. 25%
    2. 80%
    3. 50%
    4. 100%
  2. A company issuing debentures with a maturity period of not more than 18 months, in that case the creation of Debentures Redemption Reserve will be :
    1. 50% of the amount of debentures issued
    2. 25% of the amount of debentures issued
    3. 100% of the amount of debentures issued
    4. None of the above
  3. According to the guidelines issued by Securities and Exchange Board of India (SEBI) what percentage of the amount of debentures must be transferred to ‘Debentures Redemption Reserve’ before the commencement of redemption of debentures, in case of convertible debentures?
    1. 25%
    2. 50%
    3. 100%
    4. Zero
  4. . A Ltd. wants to redeem 5,000, 5% Debentures of ₹100 each at 5% premium. How much amount it must transfer to Debenture Redemption Reserve, if it has already a balance of ₹1,00,000 in Debenture Redemption Reserve Account?
    1. ₹4,00,000
    2. ₹1,50,000
    3. ₹2,00,000
    4. ₹2,50,000
  5. A Company issuing debentures with a maturity period of not more than …………….. need not create Debenture Redemption Reserve.
    1. 2 months
    2. 6 months
    3. 12 months
    4. 18 months
  6. Where is ‘Debenture Redemption Reserve’ transferred after the redemption of all debentures?
    1. Capital Reserve Account
    2. General Reserve Account
    3. Statement of Profit and Loss
    4. Sinking Fund Account
  7. Debenture Redemption Reserve account is shown on which side of the balance sheet
    1. None
    2. Assets
    3. Liabilities
    4. Not to be shown
  8. SEBI guideline related to redemption of debentures are to protect the
    1. Debtors
    2. Debenture holders
    3. Creditors
    4. Shareholders 
  9. Premium on redemption of debentures is which type of account
    1. Nominal Account
    2. Personal account
    3. Real account
    4. None of the above
  10. P ltd. issued 20000: 10 percent debentures Rs.100 each at a premium of 8 percent on 30th June, 2012. The issue was fully subscribed. How much amount of DRR is to be created before redemption of debentures
    1. 20000
    2. 10000
    3. No DRR
    4. 15000

MCQs Questions of Class – 12 Accountancy Chapter 9 – Redemption of Debentures

Answer Key

  1. (C)  2. (D)  3. (D)  4. (B)  5. (D)  6. (B)  7. (c)  8.  (b)  9. (a)  10 (c)

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