Issue and Redemption of Debentures Class 12 MCQs Questions with Answers

1. Interest on sinking fund investment is credited to :

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

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

4. 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.

5. 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-

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

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

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

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

10. Debentures cannot be redeemed at:

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

12. Sinking fund investment is:

13. Debentures can be redeemed out of:

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

15. Premium on redemption of debentures is a :

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

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

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

19. 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 :

20. Loss on Issue of Debenture Account is shown