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
Answer: Option C
: 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
Answer: Option C
: 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
Answer: Option A
: 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
Answer: Option B
: B

The journal entry for Premium on redemption of debentures while transfer to debentureholders-
Debentures A/c Dr
Premium on redemption of debenturesDr
To Debentureholders A/c
Question 4. ____________ means repayment of the amount of debentures to debentureholders.
  1.    Redemption of debentures
  2.    Issue of debentures
  3.    Collection of debentures
  4.    None of these
Answer: Option A
: A

Redemption of debenturesmeans repayment of the amount of debentures to debentureholders.

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