MCQs For NCERT Class 12 Accountancy Chapter 2 Issue and Redemption of Debentures

Please refer to the MCQ Questions for Class 12 Accountancy Chapter 2 Issue and Redemption of Debentures with Answers. The following Issue and Redemption of Debentures Class 12 Accountancy MCQ Questions has been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Accountancy with Answers for all chapters in your NCERT Class 12 Accountancy book.

Issue and Redemption of Debentures Class 12 MCQ Questions with Answers

See below Issue and Redemption of Debentures Class 12 Accountancy MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question: Excess value of net assets over purchase consideration at the time of purchase of business is credited to:   
(a) General reserve
(b) Capital reserve
(c) Vendor’s account 
(d) Goodwill account.

Question: XYZ limited issued 4000,12% debentures of Rs100 each at a premium of 5% .the total amount of interest for one year will be:         
(a) 48,000
(b) 58,000
(c) 50,000
(d) 50,400.

Question: Debentures which are transferable by mere delivery are               
(a) registered debentures
(b) first debentures
(c) bearer debentures
(d) second debentures.

Question: Premium received on issue of debentures may be utilised for writing off:           
(a) premium allowed on redemption of debentures 
(b) writing off preliminary expenses 
(c) writing off discount allowed on issue of shares
(d) all of the above.

Question: When the number of debentures applied is less than number of debentures offered to public the issue is said to be :       
(a) oversubscribed 
(b) under subscribe
(c) Fully subscribed
(d) none of the above.

Question: ABC limited issues 10,000 9% debentures of 100 each at a premium of 5% payable at a premium of 10%, the loss on issue of debentures account will be debited to by:           
(a) Rs10,00,000
(b) Rs1,00,000
(c) Rs10,50,000
(d) Rs1,05,000

Question: Maximum limit on premium on issue of debentures is       
(a) 10%
(b) 20%
(c) 15%
(d) no limit.

Question: When debentures are issued at discount and redeemable at a premium which one of the following account is debited at the time of issue ?         
(a) debentures account 
(b) premium on redemption of debentures account 
(c) loss on issue of debentures account
(d) none of these.

Question: Interest on debenture is calculated on:       
(a) its face value
(b) its issue price 
(c) its book value 
(d) its cost price.

Question: Perpetual debentures are also known as
(a) Secured Debentures
(b) Unsecured Debentures
(c) Irredeemable debentures
(d) None of the options 

Question: Debenture premium cannot be used to
(a) Write off the discount on issue of shares or debentures
(b) Write off the premium on redemption of shares or debentures
(c) Write off capital loss
(d) Pay dividends

Question: Loss on issue of debentures is treated as
(a) Miscellaneous expenditure
(b) Intangible asset
(c) Current asset
(d) Current liability

Question: Unsecured Debentures is known as
(a) Simple or Naked debentures
(b) Mortgage debentures
(c) Secured Debentures
(d) None of the options

Question: Which of the following statements is true?
(a) A debenture issued at a discount can be redeemed at a premium
(b) A debenture holder is an owner of the company
(c) A debenture holder can get his money back only on the liquidation of the company
(d) A debenture holder receives interest only in the event of profits 

Question: Which of the following statements is false?
(a) Debentures cannot be secured
(b) A company can issue convertible debentures
(c) A company can issue redeemable debentures
(d) Debentures have no right to participate in profits over and above their fixed interest 

Question: Which of the following is not true about debenture stock:
(a) Debenture stock are identified by their distinct number
(b) It must be fully paid.
(c) Debenture Stock can be transferred in fraction.
(d) None of the options 

Question: Which is an agreement between the company and the trustees to look after the interest of debenture holders.
(a) Partnership deed
(b) Debenture trust deed
(c) Both
(d) None of the options 

Question: A company can not issue
(a) Debentures with voting rights
(b) Share
(c) Debentures
(d) None of the options

Question: At the time of issue of debentures , debenture Account is
(a) Credited by the face value of debentures
(b) Credited by the Amount received
(c) Credited by the issue price of debentures
(d) None of the options 

Question: Discount or loss on issue of debentures to be written of within after 12 months from the date of balance sheet or after the period of operating cycle is shown as
(a) Other Current assets
(b) Other Current Liabilities
(c) Other Non current Assets
(d) None of the options 

Question: Secured Debentures is known as
(a) Naked debentures
(b) Unsecured Debentures
(c) None of the optionss
(d) Mortgage debentures 

Question: Which of the following is not a characteristic of Bearer Debentures?
(a) Their transfer requires a deed of transfer
(b) They are treated as negotiable instruments
(c) They are transferable by mere delivery
(d) The interest on it is paid to the holder irrespective of identity 

Question: Which of the following is false with respect to debentures?
(a) They can be issued in lieu of dividends
(b) They can be issued for cash
(c) They can be issued for consideration other than cash
(d) They can be issued as collateral security

 

Question: Which of the following is true with regard to 10% Debentures issued at a discount of 20%
(a) The face value and the carrying amount of debentures are equal.
(b) The carrying amount of debentures gets reduced each year at a rate of 20%
(c) Issue price and the carrying amount of debentures are equal
(d) At the time of redemption, the debenture holder will be paid the issue price

Question: Which of the following statements is false?
(a) Debenture is a form of public borrowing
(b) It is customary to prefix debentures with the agreed rate of interest
(c) The issue price and redemption value of debentures cannot differ.
(d) Debenture interest is a charge against profits 

Question: As per the Companies Act, Interest accrued and due on debentures should be shown Under
(a) Debentures.
(b) Capital
(c) Shares
(d) None of the options 

Question: Which of the following is/are true with respect to debentures?
(a) They can be issued for cash
(b) Both
(c) They can be issued for consideration other than cash
(d) None of the options

Question: When debentures are issued as collateral security, the final entry for recording the transaction in the books is
(a) Debit debenture suspense a/c. and credit debentures a/c.
(b) Credit debentures a/c. and debit cash a/c.
(c) Debit debenture suspense a/c. and credit cash a/c.
(d) None of the options . 

Question: Debentures are shown in the balance sheet of a company under the head of
(a) Non current Liabilities
(b) Current Liabilities
(c) Share Capital
(d) None of the options

Question: Debenture interest is paid
(a) At a pre determined rate
(b) At variable rate
(c) 25% of Profit
(d) None of the options

 Question: Debentures that do not carry any charge or security on assets of the company are known as:         
(a) secured debentures   
(b) unsecured debentures
(c) convertible debentures 
(d) registered debentures.

Question: When debentures are issued at par and redeemable and premium the loss on such an issue is debited to: 
(a) profit and loss account 
(b) debenture application and allotment account
(c) loss on issue of debentures account
(d) discount on issue of debentures account.

Question: Debentures issued as collateral security will be______ to debenture suspense account:         
(a) debited 
(b) credited
(c) sometimes debited and sometimes credited
(d) none of these.

Question: ABC took over the assets of Rs7,60,000 and liabilities of Rs80,000 of Y limited for purchase consideration of Rs5,85,000 payable by the issue of 12% debentures of Rs100 each at a discount of 10%. The number of debentures to be issued is:         
(a) 6600
(b) 6500
(c) 4500
(d) 5400

Question: A company can issue debentures             
(a) for cash
(b) as a collateral security 
(c) for consideration other than cash
(d) any of the above.

Question: A ltd took over the assets of Rs6,60,000 and liabilities of Rs80,000 of B Ltd for an agreed purchase consideration of Rs6,00,000 payable 10% in cash and the balance by issue of 15% debentures of Rs100 each at 10% discount. The number of debentures to be issued is:       
(a) 6600
(b) 5400
(c) 6000
(d) 4500

Question: Collateral security means ___________security:         
(a) primary 
(b) secondary 
(c) government   
(d) valuable. 

Question: What is the nature of premium on redemption of debenture account       
(a) Real account
(b) nominal account 
(c) personal account
(d) none of the above.

Question: Debenture interest:           
(a) is payable only in case of profits 
(b) accumulates in case of losses are inadequate profits
(c) is payable irrespective of profit or loss
(d) none of the above.

Question: Debenture is:         
(a) written instrument acknowledging a debt written by its holder.
(b) An oral acknowledgement of debt by a company 
(c) A written instrument acknowledging a debt written by its company 
(d) None of these.

Question: Maximum limit of premium on shares is :
(a) 32%
(b) 20%
(c) No limit
(d) 100%

Question: Amount of money not received out of called up capital is :
(a) Added to share capital
(b) Subtracted from share capital
(c) Shown as current liabilities
(d) Shown as current asset

Question: Following amounts were payable on issue of shares by a company : Rs.3 on
application , Rs.3 on allotment , Rs.2 on first call and Rs.2 on final call . X holding 500
shares paid only application and allotment money whereas Y holding 400 shares did not pay
final call . Amount of calls in arrear will be:
(a) 3,800
(b) 2,800
(c) 1,800
(d) 6,200

Question: Rajan Limited issued 50,000 shares at a price lower than the nominal value of the
share. The shares issued are called:
(a) Sweat equity shares
(b) Redeemable Preference shares
(c) Equity shares
(d) Bonus shares

Question: E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis,application money on another 6000 shares was refunded .The amount payable on the
application was Rs.2. Sitaraman applied for 420 shares . The number of shares allotted to him
will be:
(a) 60 shares
(b) 340 shares
(c) 320 shares
(d) 300 shares

Question: A company issued 4,000 equity shares of rupees 10 each at par payable as under:
On application rupees 3 , on allotment rupees 2; on first call rupees 4 and on final call rupees
1 per share. Applicants were received for 16,000 share . Application for 6,000 shares were
rejected and pro-rata allotment was made to the applicants for 10,000 shares . How much
amount will be received in cash on first call,when excess application money is adjusted
towards amount due on allotments and calls :
(a) Rupees 6.000
(b) nil
(c) Rupees 16,000
(d) Rupees 10,000

Question: A company issued 4000 equity shares of rupees 50 each at par payable as under:
On application rupees 20%, on allotment 40% ; on first call 10% ; on final call -balance
Applications were received for 10,000 shares . Allotment was made pro-rata . How much
amount will be received in cash on allotment?
(a) Rupees 6.000
(b) nil
(c) Rupees 16,000
(d) Rupees 20,000

Question: Which one of the following is not a part of subscribed capital:
(a) Equity shares issued to vendor
(b) Preference shares of convertible type
(c) Forfeited shares
(d) Bonus shares

Question: When nominal (face) value of a share is called up by the company but as someshareholders did not pay the money, the shares are forfeited . The share capital is shown inthe balance sheet (notes) of a company under the following heading:
(a) Subscribed and fully paid up
(b) Subscribed but not fully paid up
(c) Subscribed and called up
(d) Subscribed but not called up

Question: Zee Ltd issued 15,000 equity shares of Rs.20 each at a premium of Rs.5 payable
Rs.5 on application,Rs.10 on allotment (including premium) and the balance on first and finalcall. The company received applications for 22,500 shares and allotment was made pro rata.Bittoo to whom 1,200 shares were allotted, failed to pay the amount due on allotment. All hisshares were forfeited after the call was made. The forfeited shares were reissued to Dheeraj atpar. Assuming that no other bank transactions took place, the bank balance of the companyafter the above transactions is :
(a) Rs.6,85,000
(b) Rs.3,60,500
(c)Rs.3,78,000
(d)Rs.6,34,000

Question: Zen Ltd purchased the sundry assets of M/s Surat Industries for Rs.28,60,000payable in fully paid shares of Rs.100 each. State the number of shares issued to vendor whenissued at premium of 10%.
(a) 28,000
(b) 31,778
(c) 28,600
(d) 26,000

Question: The subscribed share capital of Mukand Ltd is Rs.1,00,00,000 of Rs.100 each. Therewere no calls in arrear till the final call was made. The final call made was paid on 97,500shares. The calls in arrear amounted to Rs.87,500.The final call on share :
(a) Rs.20
(b) Rs.35
(c) Rs.25
(d) Rs.45

Question:  These shares which in addition to the fixed preference dividend, carry a right toparticipate in the surplus profits, if any, after dividend at a stipulated rate has been paid to theequity share holders are called:
(a) Participating preference shares
(b) Convertible preference shares
(c) Redeemable preference shares
(d) Cumulative preference shares

Question: T Ltd had allotted 20,000 shares to the applicants of 24,000 shares on pro rata basis.The amount payable on application is Rs.2. Manoranjan applied for 450 shares. The numberof shares allotted and the amount carried forward for adjustment against allotment money duefrom him is:
(a 150 shares,Rs.375
(b) 375 shares,Rs.150
(c) 400 shares,Rs.100
(d) 300 shares,Rs.300

Question: A company forfeited 3,000 shares of Rs.10 each(which were issued at par) held byKishore for nonpayment of allotment money ofRs.5 per share.The called up value per sharewas Rs.8.On forfeiture, the amount debited to share capital:
(a) Rs.30,000
(b) Rs.24,000
(c) Rs.15,000
(d) Rs.6,000

Question: Z limited issued shares of Rs.100 each at a premium of 10%. Mr. Q purchased 500shares and paid Rs.20 on application but did not pay the allotment money of Rs.30. If thecompany forfeited his 30% shares, the forfeiture account will be credited by :
(a) Rs. 4500
(b)Rs. 3500
(c) Rs. 1650
(d) Rs. 3000

Question: Daisy Limited forfeited 200 shares Rs.10 each who had applied for 500 shares,issued at a premium of 10% for nonpayment of final call of Rs.3 per share. Out of these 100shares were issued as fully paid up for Rs.15. The profit on reissue is :
(a ) Rs. 700
(b) Rs. 6400
(c) Rs. 300
(d) Rs. 400

Question: Mithas Limited was formed with share capital of Rs. 50,00,000 divided into 50,000shares of Rs.100 each. 9,000 shares were issued to the vendor as fully paid for purchaseconsideration of a furniture acquired. 30,000 shares were allotted in payment of cash onwhich Rs.70 per share was called and paid . State the amount of subscribed capital :
(a) Rs. 50,00,000
(b) Rs. 30,50,000
(c) Rs. 30,00,000
(d) Rs. 20,00,000

Question: Arrange the following in proper sequence as types of “Share Capital”
(a) Paid up capital
(b) Issued capital
(c) Subscribed capital
(d) Called up capital 
(v) All of these

Question: Faltu Limited invited application for 2,00,000 shares of Rs.10 each. These shareswere issued at premium of Rs.11 each which was allowed at the time of allotment. All moneywas called and duly received except on 10,000 shares on which only application money ofRs.3 per share was received.The company forfeited all the shares. 7000 of forfeited share where re-issued at Rs.13pershare. State the amount of securities premium to be shown under the head -Reserve andsurplus.
(a) Rs.20,00,000
(b) Rs.11,11,000
(c) Rs.8,11,000
(d) Rs.21,11,000 

Question: 10% debenture issued at  Rs105 is repayable at Rs110, the face value of debenture being Rs100. Calculate the amount of loss on redemption of debentures:       
(a) 10 
(b) 5 
(c) 15
(d) 25

Question: The rules regarding transfer of DRR to general reserve is mentioned in           
(a) Companies Ac 2013
(b) Rule 18(7)(c)  of Companies Rule 2014
(c) Section 71(4) of Companies (Share Capital and Debentures) Rules,2014
(d) All of the above. 

Question: Premium on redemption of debentures is a           
(a) Liability account
(b) Asset Account
(c) Expense Account
(d) None of these.

Question: Debentures cannot be redeemed at               
(a) Premium
(b) Discount
(c) more than 10% premium
(d) at Par

Question: H Limited has outstanding 10,000 , 8% debentures of Rs 100 each that are redeemable at a premium of Rs 10 each. Out of these 5000 debentures are to be redeemed on 31^st December 2018.Denture redemption investment should be         
(a) 75,000
(b) 82,500
(c) 1,50,000
(d) 1,65,000

Question: Once the debentures are redeemed, amount of debenture redemption reserve is transferred to                   
(a) Capital Reserve
(b) Balance in Profit and loss account
(c) General Reserve
(d) Capital Redemption reserve

Question: If debentures of Rs 50,000 are issued at par but redeemable at a premium of 10%. By what principle of accounting, the loss on issue of debentures account will be debited with ` 5,000 while passing the issue entry ?         
(a) Principle of Revenue recognition 
(b) Principle of Materiality
(c) Principle of Conservatism/Prudence
(d) Principle of Full Disclosure.

Question: If debentures are issued at par and redeemed at a premium then which account will be debited by the amount of premium on debentures.             
(a) Discount on issue of debentures
(b) Premium on redemption of debentures
(c) Profit and loss account
(d) Loss on issue of debentures

Question: The provisions of the Companies Act 2013 in respect of redemption of debentures are to protect the interest of           
(a) Debetureholders
(b) Creditors
(c) Shareholdres
(d) Bankers

Question: Global savings Bank  is to redeem 40000 10% debentures of Rs 100 each on 31^st December 2018.How much amount should it invest in specified securitie               
(a) 6,00,000
(b) 10,00,000
(c) 5,00,000
(d) Nil

Question: Best Company Ltd decides to redeem 10000 ,10% debentures of Rs 100 each on 30^th June 2018.The Company shall invest in specified securities on or before             
(a) 30^th April 2017
(b) 30^th April 2016
(c) 30^th June 2017
(d) 30^th April 2018

Question: X Ltd. has issued 10,000 6% debentures of ` 100 each. The company decided to redeem half of its debentures at 10% premium. There was a balance of ` 3,40,000 in Debenture redemption reserve. As per SEBI guidelines what amount still need to be transferred to Debenture redemption reserve account out of profits.         
(a) Rs6,60,000
(b) Rs1,60,000
(c) Rs 5,50,000
(d) Rs 2,75,000

Question: Amount is set aside to Debenture redemption reserve (DRR) by             
(a) All the Companies
(b) All companies except banking companies
(c) All Companies except All India Financial Institutions
(d) All Companies except Banking Company and all India Financial Institutions regulated by RBI.

Question: Gaurav Ltd. purchased machinery costing Rs 1,71,000. It was agreed that the purchase consideration be paid by issuing 12% debentures of Rs 100 each. Assume debentures have been issued at a discount of 10%. No. of debentures issued to vendor are:               
(a) 1500
(b) 1900
(c) 2000
(d) 2100

Question: Premium payable on redemption of debentures is in the nature of             
(a) Liability Account
(b) Asset Account
(c) Expense Account
(d) None of these.

Question: Alfa Ltd. issued 20,000, 8% debentures of Rs 10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be:                   
(a) Rs 50,000
(b) Rs 40,000
(c) Rs 30,000
(d) Rs 16,000

Question: Amount is not set aside to Debenture redemption reserve if
(a) The debentures are not convertible
(b) The debentures are partly convertible
(c) The debentures are fully convertible.
(d) None of these.

Question. Debenture redemption reserve is created           
(a) before redemption starts
(b) at the closure of previos accounting year
(c) before 30^th April of the current year
(d) all the above.

Question: G Limited has outstanding 10000 8% debentures of Rs 100 each that are redeemable at a premium of Rs 10.Out of these 5000 debentures are to be redeemed on 31^st December 2018 Debenture redemption Investment should be                 
(a) 75,000
(b) 82,500
(c) 1,50,000
(d) 1,65,000

Question: Amount is not invested in debenture redemption Investment if                   
(a) Debentures are not convertible
(b)The debentures are partly convertible
(c) The debentures are fully convertible
(d) None of the above.

Question: In case the question is silent, DRR is created on the nominal value of outstanding redeemable debentures to the extent of               
(a) 25%
(b) 15%
(c) more than 25%
(d) any of the above

Question. Premium on Redemption of Debentures Account is:
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) All of the above   

Question. Loss on issue of debenture:
(a) 4,00,000
(b) 80,000
(c) 8,00,000
(d) None of the above   

Question. Amount of discount to be written off on 31st march 2016
(a) 5000
(b) 6000
(c) 7000
(d) 8000   

Question. Total Fund raised by the company:
(a) 50,000
(b) 1,30,00,000
(c) 1,26,00,000
(d) 80,00,000     

Question. When debentures are to be redeemed at premium an extra entry has to be made at the time of issue of debentures, which a/c should be credited in this entry?
(a) Loss on issue of debentures a/c
(b) Debenture redemption premium a/c
(c) Bank a/c
(d) Debenture holder’s a/c 

Question. X Ltd. acquired assets of ₹20 lakhs and took over creditors of ₹20 thousand from Y Ltd. X Ltd. issued 8% debentures of ₹200 each at a discount of 10% as purchase consideration. Number of debentures issued will be: 
(a) 11,000
(b) 9,000
(c) 10,000
(d) 10,100 

Question. Debenture holders are
(a) Debtors of the Company
(b) Creditors of the Company
(c) External users
(d) Owners of the Company 

Question. Amount of discount to be written off on 31st march 2015
(a) 8000
(b) 10000
(c) 12000
(d) 14000   

Question. Debentures are shown in the Balance Sheet of a company under the head of
(a) Non-current Liabilities
(b) Current Liabilities
(c) Share Capital
(d) None of these   

Question. Debentures issued as collateral security will be debited to:
(a) Bank Account
(b) Debentures Suspense Account
(c) Debentures Account
(d) Bank Loan Account   

Question. Amount of discount to be written off on 31st march 2014
(a) 12000
(b) 14000
(c) 16000
(D) 18000   

Question. Debenture Application A/c is in the form of
(a) Current Account
(b) Nominal Account
(c) Personal Account
(d) Real Account   

Question. Debentures represent the :
(a) Long term Borrowings of a company
(b) The Investment of Equity-Shareholders
(c) Directors’ shares in a company
(d) Short-term Borrowings of a Company   

Question. When debentures of ₹1,00,000 are issued as Collateral Security against a loan of ₹1,50,000, the entry for issue of debentures will be :
(a) Credit Debentures ₹1,50,000 and debit bank A/c ₹1,50,000
(b) Debit Debenture Suspence A/c ₹1,00,000 and Credit Bank A/c ₹1,00,000
(c) Debit Debenture Suspence A/c ₹1,00,000 and Credit Debentures A/c ₹1,00,000.
(d) Debit Cash A/c ₹1,50,000 and Credit Bank A/c ₹1,50,000.   

Question. Amount of discount to be written off on 31st march 2013
(a) 20000
(b) 15000
(c) 25000
(d) 10000    

Question. When debentures are allotted, 10% debenture account is:
(a) Debited with ₹ 80,00,000
(b) Credited with ₹80,00,000
(c) Debited With ₹ 76,00,000
(d) Credited with ₹ 76,00,000     

FILL IN THE BLANKS :

Question. A company issued Rs.50,000 10% debentures at a discount of 5% redeemable after 5 years at a pre-mium of 5%.Loss on issue of debentures will be Rs.…………………….           

Question. Dharm Ltd issues 2,000 ,10% debentures of Rs.100 each at a premium of 20%.The total amount of interest on debentures for one year will beRs.………………………….               

Question:_____________is the rate at which interest is payable on Debentures.     

Question: Interest on debentures is paid on the _____________of Debentures.        

Question: If X ltd issued 1,000; 10% Debentures of Rs100 each at a discount of 5% but redeemable after 4 years at a premium of 6%, loss on issue of Debentures a/c will be debited by _______________________.  

Question: If X ltd purchased plant worth Rs5 lakh from Y ltd but agreed to issue 5250 10% Debentures of Rs100 each to Vendor. The difference in the amount will be adjusted in ____________account.    

Question: __________________Debentures are not secured with a specific asset rather they are secured on all the assets of the company in general. 

Question:_____________is the rate at which interest is payable on Debentures.     

Question: Interest on debentures is paid on the _____________of Debentures.        

Question: If X ltd issued 1,000; 10% Debentures of Rs100 each at a discount of 5% but redeemable after 4 years at a premium of 6%, loss on issue of Debentures a/c will be debited by _______________________.  

Question: If X ltd purchased plant worth Rs5 lakh from Y ltd but agreed to issue 5250 10% Debentures of Rs100 each to Vendor. The difference in the amount will be adjusted in ____________account.    

Question: __________________Debentures are not secured with a specific asset rather they are secured on all the assets of the company in general. 

Question._____________is the rate at which interest is payable on Debentures.     

Question: Interest on debentures is paid on the _____________of Debentures.        

Question: If X ltd issued 1,000; 10% Debentures of Rs100 each at a discount of 5% but redeemable after 4 years at a premium of 6%, loss on issue of Debentures a/c will be debited by _______________________.  

Question: If X ltd purchased plant worth Rs5 lakh from Y ltd but agreed to issue 5250 10% Debentures of Rs100 each to Vendor. The difference in the amount will be adjusted in ____________account.    

Question:__________________Debentures are not secured with a specific asset rather they are secured on all the assets of the company in general. 

Question: Debenture Redemption Investment should be made _____________30^th April of the year in which debentures re redeemed.     

Question: Once the debentures re redeemed ,amount of DRR is transferred to _____________         

Question: Discount or loss on issue of debentures is a ______________       

Question:Debentures are redeemed setting aside 25% of the nominal value of debentures to Debenture Redemption Reserve .It is redemption out of _______________

Question: Once the debentures re redeemed ,amount of DRR is transferred to _____________         

True or False :

Question. Debenture holders are the creditor of a company           

Question. Company can issue debenture to its vendor                 

Question: According to the below given information the final call per share is Rs.22.
The subscribed capital of a company is Rs. 80,00,000 and the nominal value of the share is
Rs.100 each. There were no calls in arrear till the final call was made . The final call made
was paid on 77,500 shares only . The balance in the calls in arrear amounted to Rs.55,000. 

Question: True/False-Share application amount is in the nature of Real account   

Question: Securities premium received on issue of shares cannot be used for the purpose of buy back of shares. 

Question: Debenture redemption reserve may be set aside by a company out of any reserve.   

Question: Debenture Redemption Investment can be used by the Company for any purpose after the debentures have been redeemed. 

Question: General Reserve can be transferred to Debenture Redemption Reserve.          

Question: Surplus cannot be transferred to Debenture Redemption Reserve.   

Question: Debenture Redemption Investment is made by companies required to set aside amount to Debenture redemption Reserve.     

Question: Out of total face value, liability of a shareholder is limited to …………… value ofthe share allotted to him.   

Question: Mahima limited has an authorised capital of Rs. 1,00,00,000 divided into 1,00,000equity shares of Rs .100 each . If offered 90,000 equity shares Rs.10 each at a premium ofRs.8 .The public applied for 81,000 equity shares. Till 31st March 2018, Rs.17 (includingpremium) was called . An applicant holding 5000 shares did not pay first call of Rs.2pershare.
As per the above given information:
………. is the amount of Share capital to be shown in the balance sheet of the company.    

Question: Match the following :
(a) Cumulative Pref. Share         (i)Repaid after some time
(b) Participating Pref. Share       (ii) converts into equity shares
(c) Redeemable Pref. shares       (iii) Dividend accumulates if not paid
(d) Convertible Pref. shares       (iv) Gets share in surplus profit

The correct match is:
(a) a-ii ,b-i, c-iii, d-iv
(b) a-iii, b-iv, c-i, d-ii
(c) a-iii, b-iv, c-ii ,d-i
(d) a-ii, b-iv, c-iii, d-i