Important Questions for Redemption of Debentures Chapter 10

Important Questions with Answers for CBSE Class 12 Accountancy Chapter 10- Redemption of Debentures which is outlined by expert Accountancy teachers from the latest version of CBSE (NCERT) books.

CBSE Class 12 Accountancy Chapter – 10 Important Questions

Question 1

Provide the meaning of Redemption of Debentures.

Answer: Redemption of Debentures means, discharging the liability on a/c of the debentures issued by an enterprise executing the repayment to the debenture holders.

Question 2

Premium payable on redemption of debentures is in the nature of,

  • Liability a/c
  • Asset a/c
  • Expense a/c
  • None of these

Answer: Liability a/c

Question 3

What are the methods that are followed while redeeming a debenture?

Answer: Methods that are followed while redeeming a debenture are,

  • Redemption of Debentures in a Lump sum on maturity
  • Redemption of Debentures out of the capital
  • Redemption of Debentures out of cash

Question 4

Expand DRI.

Answer: DRI refers to – Debentures Redemption Investment

Question 5

Expand DRR.

Answer: DRR refers to – Debentures Redemption Reserve

Question 6

The provisions of the Companies Act, 2013 in respect of redemption of debentures are to protect the interest of,

  • Debenture holders
  • Creditors
  • Shareholders
  • Bankers

Answer: Debenture holders

Question 7

Mention 3 points that are to be kept redeeming the debentures.

Answer: 3 points that are to be kept redeeming the debentures are,

  • Time of Redemption of Debentures
  • Amount of Redemption of Debentures
  • Sources of Redemption of Debentures

Question 8

What are the 2 specified securities for DRI?

Answer: Specified securities for DRI are,

  • In deposit with any Scheduled Bank, which is free from any charge
  • In the unencumbered securities of the Central Government or any State Government

Question 9

A Bank Ltd. is to redeem ₹. 10,000/-; 10% debentures of ₹. 100/- each on 30th June 2017. How much amount must be transferred to DRR by it?

  • ₹. 2,50,000/-
  • ₹. 1,00,000/-
  • ₹. 5,00,000/-
  • Nil

Answer: Nil

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1 Comment

  1. Very good and useful for students

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