Company Accounts Issue Of Debentures CBSE Questions & Answers

Company Accounts Issue Of Debentures

This is Accountancy Class 12 Company Accounts Issue of Debentures CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Name an instrument of debt owned by a company as an acknowledgement of debt
  • A
    Share
  • B
    Interest
  • C
    Loan
  • D
    Debenture
    Correct
2
Debenture holder’s have no right for ________
  • A
    Redemption of debentures on maturity
  • B
    Dividend
    Correct
  • C
    Interest
  • D
    None of these
3
The following are the types of debentures except
  • A
    Convertible debentures
  • B
    Redeemable debentures
  • C
    Perpetual Debentures
  • D
    Equity Debentures
    Correct
4
Debenture trust deed
  • A
    Both of these
  • B
    document created by the company whereby trustee is appointed to protect the interest of share holders
  • C
    document created by the company whereby trustee is appointed to protect the interest of debenture holders
    Correct
  • D
    Non of these
5
Match the following types of debentures. Options are
Question 5 figure 1
  • A
    a(iii),b(ii),c(i)
    Correct
  • B
    a(iii),b(i),c(ii)
  • C
    a(i),b(ii),c(iii)
  • D
    a(ii),b(iii),c(i)
6
Why is premium on the issue of debentures considered as a capital profit
  • A
    It is not a loss arising from the normal course of business operations.
  • B
    It is an income arising from the normal course of business operations.
  • C
    It is not an income arising from the normal course of business operations.
    Correct
  • D
    All of these
7
When debentures are issued without interest rate and issue price is thereby discounted, the issue of debenture is said to have been made as
  • A
    Zero coupon Bond
  • B
    Deep zero bond
  • C
    Discount bond
  • D
    Deep Discount Bond
    Correct
8
Which of the following statement is wrong regarding debenture holder
  • A
    They are paid interest
  • B
    Debentures are ordinarily Secured
  • C
    They get dividend
    Correct
  • D
    They are the creditors of the company
9
Interest on debentures will be paid to debenture holders ______
  • A
    When company is maintaining Reserve
  • B
    Whether there is profit or loss
    Correct
  • C
    When there is capital reserve
  • D
    When there is profit
10
When debenture premium is transferred to capital reserve account is debenture premium account is
  • A
    Debited
    Correct
  • B
    Both Debited and Credited
  • C
    No entry is to be made
  • D
    Credited
11
Debentures cannot be issued by _______
  • A
    Sole propreitor
    Correct
  • B
    Infrastructure company
  • C
    Private company
  • D
    Public company
12
Company if receives applications for number of debentures that exceed the number of debentures offered for subscription, it is called
  • A
    Par subscription
  • B
    All
  • C
    Over subscription
    Correct
  • D
    Under subscription
13
While passing the entry for refund of money if the applications are rejected. Which account should be credited
  • A
    Debenture Application A/c
  • B
    Security Premium A/c
  • C
    Debenture Allotment A/c
  • D
    Bank A/c
    Correct
14
The form in which debentures can be issued
  • A
    Debentures issued for consideration other than cash
  • B
    Debentures issued as collateral security
  • C
    All of these
    Correct
  • D
    Debentures issued for cash
15
A debenture of Rs.100 is issued at Rs.110.It is an example of
  • A
    None of these
  • B
    Debenture issued at premium
    Correct
  • C
    Debenture issued at par
  • D
    Debenture issued at discount