ACCOUNTANCY FOR CLASS 12 CHAPTER 7 ISSUE AND REDEMPTION OF DEBENTURES, MCQS ALONG WITH THE ANSWERS

Free Accountancy Multiple Choice Questions for Class 12 CBSE along with the answers Chapter 7: Issue and Redemption of Debentures. Accountancy MCQs for Class 12 chapter-wise with the answers are prepared based on the current exam pattern. Students will be able to tackle the MCQs with these answers to realise their spadework level.

1. Premium on redemption of debentures is generally provided at the time of _______.

(a) Issue of debentures

(b) Redemption of debentures

(c) Writing off

(d) After 10 years

Answer: (b) Redemption of debentures

2. Sources of finance of the redemption of debentures are ______.

(a) Redemption out of profits

(b) Redemption out of capital

(c) The proceeds from fresh issue of shares/debentures

(d) All of the above

Answer: (d) All of the above

3. Loss on the issue of debenture account is shown _______.

(a) On the assets side of the balance sheet

(b) On the liabilities side of the balance sheet

(c) On the credit side of the profit and loss account

(d) None of the above

Answer: (a) On the assets side of the balance sheet

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

(a) Profit and loss A/c

(b) Debenture application and allotment A/c

(c) Loss on the issue of debentures A/c

(d) Premium on redemption A/c

Answer: (c) Loss on the issue of debentures A/c

5. When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue?

(a) Debentures A/c

(b) Premium on redemption of debentures A/c

(c) Loss on the issue of debentures A/c

(d) Profit and loss A/c

Answer: (c) Loss on the issue of debentures A/c

6. Premium on redemption of debentures A/c is in the nature of ______.

(a) Personal A/c

(b) Real A/c

(c) Nominal A/c

(d) None of the above

Answer: (c) Nominal A/c

7. In case of the issue of debentures as collateral security for a loan from the bank, which account will be debited?

(a) Bank account

(b) Bank loan account

(c) Debentures account

(d) Debentures suspense account

Answer: (d) Debentures suspense account

8. Debentures that are transferred by mere delivery are called _______.

(a) Registered debentures

(b) First debentures

(c) Bearer debentures

(d) None of the above

Answer: (c) Bearer debentures

9. On liquidation of a company, the principal amount of debentures is returned ________.

(a) First of all

(b) Last of all

(c) Before equity capital

(d) None of the above

Answer: (a) First of all

10. Discount on the issue of debentures should be written off _______.

(a) Out of securities premium account

(b) Out of capital profits

(c) Out of statements of profit and loss

(d) In the above order over the period of debentures

Answer: (d) In the above order over the period of debentures

We trust that the Accountancy MCQs offered for Class 12 with respect to Chapter 7: Issue and Redemption of Debentures will help you. Assuming you have any questions with answers to Class 12 CBSE Accountancy, Issue and Redemption of Debentures MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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