Issue and Redemption of Debentures Class 12 MCQs Questions with Answers

1. Sources of finance of the redemption of debentures are:

2. Premium on redemption of debentures is generally provided at the time of ……………

3. If redemption of debentures is made by conversion method, the amount to be transferred to ‘Debenture Redemption Reserve Account’ will be equal to…….percent of converted amounted.

4. If debenture of ₹ 1,00,000 were issued for discount of ₹ 10,000, which are redeemable after four years. Then amount of discount to be written off from P. & L. Account each year is :

5. The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to :

6. Debentures cannot be redeemed at:

7. Premium on Redemption of Debentures A/c is:

8. A company should transfer to Debenture Redemption Reserve A/c at least what percent of the amount of debentures issued before the commencement of redemption of debentures-

9. Loss on Issue of Debenture Account is shown

10. If debentures purchased in open market are not immediately cancelled, they are treated as :

11. Debentures can be redeemed out of:

12. Interest on sinking fund investment is credited to :

13. When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to :

14. Sinking fund investment is:

15. Premium on redemption of debentures is a :

16. Profit on sale of Sinking Fund Investment is transferred to

17. When all debentures are redeemed, balance in the Debenture Redemption Fund Account is transferred to

18. Profit on cancellation of own debentures is transferred to:

19. A company issued 1,000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for:

20. According to SEBI guidelines, a Company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued: