## Lakshya Education MCQs

Question: By what amount Bank A/c is to be credited while redemption when 10,000 debentures of Rs. 100 each are isued  at premium of Rs. 20 and to be redeemed at par ?
Options:
 A. 10,000 B. 12,00,000 C. 10,00,000 D. 2,00,000
: C

Redemption amount to be credited to Bank A/c = Rs. 10,000 * 10 = Rs. 10,00,000

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## More Questions on This Topic :

Question 1. Which of the following are types of debentures?
1.    Irredeemeble
2.    Redeemable
3.    Both Irredeemeble and Redeemable
4.    None of these
: C

Both Irredeemeble andRedeemableare types of debentures.
Question 2. Can we redeem debentures at premium?
1.    Yes, we can.
2.    No, we can't.
3.    Partially Yes
4.    None of these
: A

Yes, we can redeem debentures at premium.
Question 3. The journal entry for Premium on redemption of debentures while transfer to debentureholders-
1.    Debentures A/c Dr To Debentureholders A/c
2.    Debentures A/c Dr Premium on redemption of debentures Dr  To Debentureholders A/c
3.    Debentures A/c Dr  To Premium on redemption of debentures
4.    None of these
: B

The journal entry for Premium on redemption of debentures while transfer to debentureholders-
Debentures A/c Dr