Redemption Of Debentures CBSE Questions & Answers

Redemption Of Debentures

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

Questions & Answers

1
Debenture Redemption Reserve is created by transferring amount from :
  • A
    Debentures A/c
  • B
    Statement of Profit and Loss
    Correct
  • C
    Profit and Loss A/c
  • D
    Securities Premium A/c
2
At the end Debenture Redemption Reserve is to be transferred to the :
  • A
    Profit and Loss A/c
  • B
    General Reserve
    Correct
  • C
    Profit and Loss Appropriation A/c
  • D
    Capital Reserve
3
50% of DRR is Created by the :
  • A
    Companies whose maturity period is less than 18 months
  • B
    Unlisted Companies
  • C
    Listed Companies
    Correct
  • D
    Infrastructure companies
4
Central Govt. Provides guidelines to the :
  • A
    Infrastructure Companies
  • B
    Listed Companies
  • C
    Unlisted companies
    Correct
  • D
    Companies whose maturity period is less than 18 months
5
Debentures cannot be redeemed purely 100% out of :
  • A
    None of these
  • B
    Cash
  • C
    Profit
  • D
    Capital
    Correct
6
DRR can be used only after redeeming the :
  • A
    10% Debentures
    Correct
  • B
    50% Debentures
  • C
    30% Debentures
  • D
    40% Debentures
7
It is mandatory to create DRR for the listed companies? Who makes it mandatory ?
  • A
    RBI
    Correct
  • B
    Central Government
  • C
    Companies Act 1956
  • D
    SEBI
8
DRR is not required in case of :
  • A
    Infrastructure Companies
    Correct
  • B
    None of these
  • C
    Listed Companies
  • D
    Unlisted Companies
9
The main advantage of purchasing own debentures from the market is _______
  • A
    It will Provide more liquidity to the company
  • B
    None of these
  • C
    Company can utilize its cash resources
    Correct
  • D
    It will help in writting off fictitious assets
10
DRR is not mandatroy for those companies whose debentures are redeemable _________
  • A
    Within 18 Months
    Correct
  • B
    Within 20 Months
  • C
    Within 24 Months
  • D
    Within 60 Months
11
Statement of Profit and loss is debited and DRR is credited when_______
  • A
    Profit is calculated
  • B
    DRR Transferred to General Reserve
  • C
    DRR is created
    Correct
  • D
    Profit is transferred to General Reserve
12
Repayment of amount with interest to the debentureholders is called_______
  • A
    Redemption of debentures
    Correct
  • B
    Issue of Debentures at discount
  • C
    Issue of Debentures at premium
  • D
    Issue of Debentures
13
Who is responsible for creation of DRR?
  • A
    Trustees
    Correct
  • B
    Shareholders
  • C
    Investors
  • D
    Debentureholders
14
Which of the following is not a source of redemption of debentures?
  • A
    Fictitious Assets
    Correct
  • B
    Fresh Capital
  • C
    Selling Assets
  • D
    Profits
15
SEBI provides guidelines only to the _______________
  • A
    Partnership firms
  • B
    Unlisted companies
  • C
    Private Companies
  • D
    Listed Companies
    Correct