12th Standard CBSE - Accountancy - Accounting for Debentures

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Question - 1

What type of debentures can be issued by an Indian company?

  • A Secured
  • B Unsecured
  • C Convertible
  • D Redeemable

Question - 2

When debentures are issued as secondary securities it is called

  • A Issue for consideration other than cash
  • B Issue as collateral securities
  • C Issued at a discount
  • D Issued at premium

Question - 3

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 above

Question - 4

When debentures are issued at a discount, should be written off the discount

  • A In the year of the issue of debentures
  • B Within 5 years of the issue of debentures
  • C During the life of the debentures
  • D In the year of redemption of debentures

Question - 5

Debenture holders are

  • A Owners of the company
  • B Creditors of the company
  • C Vendors of the company
  • D Customers of the company

Question - 6

At the time of issue of debentures, Debenture account is

  • A Credited by the amount received
  • B Credited by the issue price of the debenture
  • C Credited by the face value of the debenture
  • D None of the above

Question - 7

Premium on redemption of debentures is in the nature of

  • A Personal account
  • B Real account
  • C Nominal account
  • D None of these

Question - 8

In case debentures of Rs.10,000 are issued at par but payable at a premium of 10%, the premium payable will be debited to

  • A Debentures Suspense account
  • B Premium on redemption of debentures account
  • C Loss on issue of debentures account
  • D Both (a) and (c)

Question - 9

Debenture interest is paid

  • A At a pre-determined rate
  • B  At variable rate
  • C At a rate based on net profit of the company
  • D At a rate as determined by the company from time to time

Question - 10

Discount or loss on issue of debentures to be written off within 12 months of the date of Balance Sheet is shown as

  • A Other current assets
  • B   Other non current assets
  • C Other long term liabilities
  • D   Other current liabilities
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