MCQ for CA Intermediate ACCOUNTING - Chapter 8 - REDEMPTION OF DEBENTURES

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - ACCOUNTING - Chapter 8: REDEMPTION OF DEBENTURES - For Practice relevant for May/November 23 Examinations

 

Q1.  Which of the following statements is true? 

1. A debenture holder is an owner of the company.  
2. A debenture holder can get his money back only on the liquidation of the company
3. A debenture issued at a discount can be redeemed at a premium. 

Answer: 3

Q2. Which of the following statements is false? 

1. Debentures can be redeemed by payment in lump sum at the end of a specified period.
2. Debentures cannot be redeemed during the life time of the company.
3. Debentures can be redeemed by payments in annual instalments

Answer: 2

Q3. For debentures issued by unlisted companies (other than AIFIs, Banking companies, NBFCs and HFCs), Debentures Redemption reserve will be considered adequate if it is:  

1. 25% of the value of debentures issued through public issue.
2. 10% of the value of debentures issued through public issue.
3. 5% of the value of debentures issued through public issue.

Answer: 2

Q4. At the time of cancellation of own debentures, the account credited will be 

1. Debentures account
2. Own debentures account.
3. Bank account. 

Answer: 2

Q5. A company has issued 6% debentures for ₹ 10,00,000, interest being payable on 31st March and 30th September. The company purchases ₹ 10,000 debentures at ₹ 96 (ex-interest) on 1st August 20X1. These debentures were cancelled on same date. The amount of Profit/loss on cancellation of debentures will be 

1. Profit of ₹ 600.
2.  Profit of ₹ 400.
3. Loss of ₹ 400

Answer: 2

CA Intermediate ACCOUNTING - MCQ for Chapter 9 -   

To get back to the Chapterwise MCQ List Page       

Hope you can find this article helpful. If you did like the content then Share it with your friends who are preparing for CA Inter Exams or who will be giving their CA Inter Exams in the near future.