Answer. 100 of the companies act, a company is not allowed to return to its shareholders the share money without the permission of the court. Accounting Treatment for Premium on Redemption on Debentures: Premium on redemption of debentures account is shown under the Securities Premium in the Balance Sheet. 1,50,000 out of which the directors transferred Rs. When all the debentures are redeemed, the Debenture Redemption Reserve Account is closed by transferring to General Reserve Account. Give Journal entries on issue and redemption of debentures only. Loss on issue of debentures account is a revenue loss. 100 each at a discount of 5%. Model: Redemption out of profit XZ Ltd. has a balance of Rs.12,00,000 in P&L A/c. Introduction. 1,50,000 out of which the directors transferred Rs. 80,000. We have provided Depreciation, Provisions and Reserves Class 11 Accountancy MCQs Questions with Answers to help students understand the concept very well. 1 answer. Multiple Choice Questions for important part of exams for Grade 12 Answer False Question 11. Visit our website www.arinjayacademy.com for Hindi, Maths, Subscribe to the Channel and stay updated with the latest Educational Videos. (a) Calls-in-advance account (b) Share capital account (c) Reserve capital account (d) Share premium account Fundamentals Of Accounting: Issue;Forfetire And 80 Reissue Of Shares MCQ 2 2. Answer False DO IT YOURSELF V 1. MCQ Questions for Class 11 Accountancy with Answers were prepared based on the latest exam pattern. Personal Account. MULTIPLE CHOICE QUESTIONS: Chapter:-1: Introduction to Company Accounts 1. 2.To redeem Debentures. (a) For the companies whose financial statements comply with the accounting standards as prescribed under section 133, the premium payable on redemption shall be provided out of the profits of the company, before the shares are redeemed. Company Accounts Redemption of Debentures Class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. III Examination , 2016. Preference shares can be redeemed out of the proceeds of fresh issue of debentures. the interest and premium as per the terms of issue. Madura Ltd. Decided to Redeem Its 10,000, 10% Debentures of 100 Each at a Premium of 8%. Rs.12,00,000 2. Premium on redemption of debentures is a personal account and it is a liability of the company which is payable on redemption. Redemption of Preference Shares Corporate and Management Accounting MCQ. a. Premium on redemption of preference shares. (B) 25% of the amount of debentures issued. Debenture can be issued at a premium, but equity shares cannot be issued at a premium. REDEMPTION AT A PREMIUM: When debentures are redeemable at a premium, amount payable at time of redemption will be more than the face value of debentures by the amount of premium on redemption. -----is a document which either creates or acknowledges a debt. Monga, J.R., Financial Accounting: Concepts and Applications, Mayoor Paper Backs, New Delhi. Issued 4,000, 12% debentures of Rs. D. None of these. A real account 2. Question : A Ltd issued 5000 5 % Debentures of Rs 15 each at a premium of 20 % redeemable at par. premium is transferred to securities premium account. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. According to sec. Students who can Practice CBSE Class 12 Accountancy Multiple Choice Questions with Answers to improve your score in Board Exams. MCQ Class 12 Accountancy Chapter 1 Accounting for Share Capital. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 7 Issue of Shares. Answer: C. 2. (a) For the receipt of application money . 100 each at a premium of 10%, which are redeemable after 10 years at a premium of 20%. A real account. a) Redemption value b) Face value c) Market value d) Maturity value 10. C. Nominal Account. The amount which should be credited to the debentures account on 10 th October, 2006 will be 1. (1) Debenture Redemption Reserve: DRR is a reserve created out of profits for redeeming debentures. Correct option is . Solve questions and compare with the answers provided below. Answer False DO IT YOURSELF V 1. Maximum rate of discount that can be allowed on issue of shares a) 5% b) 10% c) 15% d) 20% 16. b. 6 Marks Questions. How much amount of Debenture Redemption Reserve is to be created before redemption of [] The difference between the redeemed price and the par value is regarded as a capital loss and this loss is written off till the redemption of the debentures. Answer: B A nominal account-expenditure. MCQ Questions for Class 12 Accountancy with Answers were prepared based on the latest exam pattern. T.Y. According to section 74(4) of the Companys Act, 2013 and Rule 18(7) of the Companies (Share Capital and Debentures) Rules, 2014, a Company is required to transfer an amount equal to at least 25% of the value of debentures to the Debenture Redemption Reserve a/c before redemption of debentures. A personal account 4. issue and redemption of debentures; class-12; Share It On Facebook Twitter Email. With Solution Essays, you can get high-quality essays at a lower price. Company Accounts Multiple Choice Questions and Answers for competitive exams. Rs. 4. Premium on issue of debentures is a. Debenture: It is a document issued by a company under its common seal acknowledging the debt and it also contains the terms of repayment of debt and payment of interest at a specified rate. It may be at par or at premium. A Ltd. issued 10,000 12% Debentures of Rs. 18. Answer False Question 12. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. (B) Nominal Account 8. The MCQ Questions for Class 12 Accountancy with answers have been prepared as per the latest 2021 syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE, NCERT and KVS. Question 1. Questions? Q.7) XYZ Ltd. issued 200, 15 percent debentures of Rs.100 each on January 01, 2002 at discount of 10 percent redeemable at premium of 10 percent out of profits. 3. A nominal account - income. Answer False Question 12. (A) Free Reserves (B) Securities Premium Account (C) Capital Redemption Reserve Account (D) Asset Revaluation Reserves 31. Rs. 3. A Company issued 2,000 10% Debentures of Rs 100 each on 1st January 2002. (A) Loss on issue of debentures a/c (B) Debenture redemption premium a/c (C) Bank a/c (D) Debenture holders a/c. The term current asset doesnt cover (A) Car (B) Debtors (C) Stock It must be noted that debentures are formed of loan taken by the company. 1956, Securities Premium Account may be used by the company (a) In paying up un-issued securities of the To pay premium on the redemption of preference securities or debentures of the company. MCQs on Debentures A debenture is a debt tool used by a company that supports long term loans. Here, the fund is a borrowed capital, which makes the holder of debenture a creditor of the business. The debentures are both redeemable and unredeemable, freely transferable with a fixed interest rate. (ii)Issued at a premium of 10% and redeemable at a premium of 20%. Shares on the other hand isn't, it is owners capital. Real C. Nominal. Allotment of shares or debentures must be made after getting _____ subscription. All Multiple choice questions have been provided with solutions and have been prepared based on the expected pattern in Premium on redemption of debentures account is shown under the Securities Premium in the Balance Sheet. Interest is payable on September 30 and March 31 every year. Purchase B. TS Grewal Solutions for Class 12 Accountancy Company Account Redemption of Debenture (Volume II) Question 1. P Ltd. issued 10,000, 12% debentures of Rs. Financial Statements of a Company Class 12 MCQ. Answer False Question 11. Bcom. The best app for CBSE students now provides accounting for partnership firms fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. In such case : k (A) Loss on Issue will be debited by 24,000 (B) Loss on Issue will be debited by 56,000 (C) Loss on Issue will be debited by 40,000 (D) Premium on Redemption will be credited by 24,000. e) Debit redeemable preference share capital a/c; credit capital reduction a/c. Answer: C If the company acquires some assets from the vendor and instead of paying the vendor in cash, the company may allot debentures in payment of purchase consideration. This contains 10 Multiple Choice Questions for Commerce Test: Company Accounts Issue Of Debentures - 1 (mcq) to study with solutions a complete question bank. B) Nominal Account. Premium payable on redemption of preference shares. To 9% Debentures A/c To Premium on Redemption of Debentures A/c (Debentures application money transferred to debentures and Premium on debenture account) 95,000 10,000 1,00,000 5,000: 6. 1000 is offered at 1,050, it is a case of issue of debentures at premium. D. None of the above. Students can solve NCERT Class 12 Accountancy Redemption of Debentures MCQs Pdf with Answers to know their preparation level. Question 10. 2. Shares Premium on Redemption from Security Premium and Profits of Company Capital Redemption Reserve Account Creation and Use, Excluding Revised Schedule VI Balance Sheet. _____ is the price at which the bond is traded in the stock exchange. Analysis of Financial Statements Class 12 MCQ. Rs.10,00,000 Correct Answer: 4Q.11 Alfa Ltd. issued 20,000, 8% debentures of Rs.10 each at par. BCOM (SEM V) FINANCIAL ACCOUNTING MCQ Question bank 2020 , Importance question bank 2020 Premium on redemption of debenture account is: a) A real Account. We have provided Depreciation, Provisions and Reserves Class 11 Accountancy MCQs Questions with Answers to A company is authorised by its Articles of Association and the terms of issue and redeem the debentures before the due date in prospectus. (a) Question: Re-issued debentures are treated as new debentures for the purpose of_____ (a) Debentures certificates (b) Income Tax (c) Stamp duty 3. Capital Redemption Reserve Account may be applied to issue (A) Right shares (B) Bonus debentures (C) Bonus to employees of the company (D) Bonus shares Answer: (D) Ques. Show the journal entries. 4. Premium on redemption of debentures is a personal account and it is a liability of the company which is payable on redemption. Premium on redemption of debentures account is a: A. Debentures Objective Questions. Students can solve NCERT Class 12 Accountancy Redemption of Debentures MCQs Pdf with Answers to know their preparation level. The Premium on Redemption of Debenture is shown in the Notes to Accounts under the sub-head of 'Other Long-term Liabilities'. Loss on Issue of Debentures A/c Dr. To 14% Debentures A/c To Securities Premium A/c To Premium on Redemption of Debentures A/c (Being the issue of Debentures) 1,99,500 19,000 1,90,000 9,500 19,000 On Redemption of Debentures 14% Debentures A/c Dr. General Reserve B. This payment is to be made at the end of the third year. Answer C. Question 10. (C) Premium on Redemption will be debited by Rs.25,000. answered Aug 4, 2018 A company issuing debentures with a maturity period of not more than 18 months, in that case the creation of Debentures Redemption Reserve will be : (A) 50% of the amount of debentures issued.
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