Accountancy MCQ Class 12 Chapter 7: Check the below NCERT MCQ Questions for Accountancy MCQ Class 12 Chapter 7 with Answers Pdf free download. Accountancy MCQ Class 12 Chapter 7 Questions for Accountancy with Answers were prepared based on the latest exam pattern. We have provided Accountancy MCQ Class 12 Chapter 7 with Answers to help students understand the concept very well.

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Accountancy MCQ Class 12 Chapter 7

1. 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

2. When all debentures are redeemed, balance in the Debenture Redemption Fund Account is transferred to:
(a) Capital Reserve
(b) General Reserve
(c) Profit & Loss Appropriation A/c
(d) None of these

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

4. 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

5. 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

6. The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to :
(a) Profit & Loss Account
(b) Profit & Loss Appropriation Account
(c) General Reserve Account
(d) Sinking Fund Account

7. Debentures that are transferred by mere delivery are called _______.
(a) Registered debentures
(b) First debentures
(c) Bearer debentures
(d) None of the above

8. Profit on cancellation of own debentures is transferred to:
(a) Profit & Loss Account
(b) Profit & Loss Appropriation Account
(c) General Reserve Account
(d) Capital Reserve Account

9. 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

10. Debentures can be redeemed out of:
(a) Profit
(b) Capital
(c) Provision
(d) All of the above

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