Accountancy MCQ Class 12 Chapter 7 | Issue and Redemption of Debentures | Accountancy Quiz for Class 12 and Other Competitive Exams

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.

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

Accountancy MCQ Class 12 Chapter 7


1. Premium on redemption of debentures is a :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) Suspense A/c

View Answer

(d) Suspense A/c


2. 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

View Answer

(b) Redemption of debentures


3. 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

View Answer

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


4. Debentures cannot be redeemed at:
(a) Par
(b) Premium
(c) Discount
(d) More than 10% premium

View Answer

(c) Discount


5. 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

View Answer

(d) Debentures suspense account


6. If debentures purchased in open market are not immediately cancelled, they are treated as :
(a) Current Assets
(b) Current Liabilities
(c) Investment
(d) Capital

View Answer

(c) Investment


7. 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

View Answer

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


8. A company issued 1,000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for:
(a) Rate of dividend
(b) Rate of Tax
(c) Rate of interest
(d) None of these

View Answer

(c) Rate of interest


9. 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 the above

View Answer

(d) All the above


10. 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

View Answer

(c) Nominal A/c


Follow on Facebook

By Team Learning Mantras

Related post