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 -   

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