Important Questions with Answers for Class 12 CBSE 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
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 debentureholders.
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
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 Debenturesout of cash
Answer: DRI refers to – Debentures Redemption Investment
Answer: DRR refers to – Debentures Redemption Reserve
The provisions of the Companies Act, 2013 in respect of redemption of debentures are to protect the interest of,
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
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
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/-
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