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MCQ Questions for Class 12 Accountancy set-7
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1. Dividends are usually paid on :
Authorised Capital
Issued Capital
Called-up Capital
Paid-up Capital
2. If vendors are issued fully paid shares of ₹ 1,00,000 in consideration of net assets of ₹ 1,20,000 the balance of ₹ 20,000 will be credited to :
Goodwill Account
Capital Reserve Account
Vendor’s Account
Profit & Loss Account
3. Which account should be debited when shows an issued to promoters:
Share Capital A/c
Assets A/c
Promoter’s A/c
Goodwill A/c
4. According to Section 52 of the Compaines Act, the amount in the Securities Premium Account cannot be used for the purpose of:
Issue of fully Paid Bonus Shares
Writing Off Losses of the Company
Writing off Preliminary Expenses
Writing Off Commission or Discount on Issue of Shares
5. 10,000 equity shares of 10 Rs. each were issued to public at a premium of ₹ 2 per share payable on allotment. Applications were received for ₹ 12,000 shares. Amount of securities premium account will be :
₹ 20,000
₹ 24,000
₹ 4,000
₹ 1,600
6. A Ltd. purchased a machinery for 1,80,000 Rs. for which it is paying by issue of shares of 100 Rs. each at 20% premium. How many shares will be issued as consideration. ?
2,500
2,000
1,500
3,000
7. Right Shares are issued to :
Promoters for the Services
Holders of Convertible Debentures
Existing Shareholders
All of the above
8. A company is registered with a share capital of ₹ 1,00,000 Rs. divided into ₹ 10,000 shares of ₹ 10 each. Of these shares 9,990 shares are held by Rajeev and 10 Shares are held by Sanjay. In the eye of law it is treated as:
Partnership
Private Company
Public Compancy
Government Company
9. Which of the following should be deducted from the called-up capital to find out paid-up capital:
Calls-in-advance
Calls-in-arrear
Share forfeiture
Discount on issue of shares
10. When all debentures are redeemed, balance in the Debenture Redemption Fund Account is transferred to:
Capital Reserve
General Reserve
Profit & Loss Appropriation A/c
None of these
11. According to SEBI guidelines, a Company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued:
50%
25%
70%
100%
12. The balance of ‘Sinking Fund Account’ after the redemption of debentures is transferred to :
Profit & Loss Account
Profit & Loss Appropriation Account
General Reserve Account
Sinking Fund Account
13. Profit on cancellation of own debentures is transferred to:
Profit & Loss Account
Profit & Loss Appropriation Account
General Reserve Account
Capital Reserve Account
14. If debenture of ₹ 1,00,000 were issued for discount of ₹ 10,000, which are redeemable after four years. Then amount of discount to be written off from P. & L. Account each year is :
₹ 3,000
₹ 4,000
₹ 2,500
₹ 5,000
15. Debentures can be redeemed out of:
Profit
Capital
Provision
All of the above
16. Premium on redemption of debentures is a :
Personal A/c
Real A/c
Nominal A/c
Suspense A/c
17. Premium on redemption of debentures is generally provided at the time of ……………
Issue of debentures
Redemption of debentures
Writing off
After 10 years
18. Debentures cannot be redeemed at:
Par
Premium
Discount
More than 10% premium
19. If debentures purchased in open market are not immediately cancelled, they are treated as :
Current Assets
Current Liabilities
Investment
Capital
20. Sources of finance of the redemption of debentures are:
Redemption out of profits
Redemption out of capital
The proceeds from fresh issue of shares/debentures
All the above
21. A company issued 1,000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for:
Rate of dividend
Rate of Tax
Rate of interest
None of these
22. A company should transfer to Debenture Redemption Reserve A/c at least what percent of the amount of debentures issued before the commencement of redemption of debentures-
50%
25%
15%
100%
23. If redemption of debentures is made by conversion method, the amount to be transferred to ‘Debenture Redemption Reserve Account’ will be equal to…….percent of converted amounted.
40
50
60
Not required
24. Loss on Issue of Debenture Account is shown:
On Assets side of Balance Sheet
On Liabilities side of Balance Sheet
On Credit side of P & L Account
None of these
25. Profit on sale of Sinking Fund Investment is transferred to:
Profit & Loss Account
General Reserve
Sinking Fund Account
Capital Reserve
26. Premium on Redemption of Debentures A/c is:
Asset
Expenses
Liability
Revenue
27. Interest on sinking fund investment is credited to :
Profit & Loss A/c
Sinking Fund A/c
General Reserve A/c
Sinking Fund Investment A/c
28. Sinking fund investment is:
An Income
An exause
An Asset
A Liability
29. When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to :
Profit & Loss A/c
Debenture Application and Allotment A/c
Loss on Issue of Debentures A/c
Premium on Redemption A/c
30. Own debentures are those debentures of the company which ?
The company allots to its own promotors
The company allots to its directors
The company purchases from the markets and hold them as investments
None of these
31. When debentures are redeemed out of profits, an equivalent amount is transferred to :
General Reserve
Debenture Redemption Reserve
Capital Reserve
Profit & Loss A/c
32. Profit on sale of debentures redemption fund investment in the first instance in credited to :
Debenture Redemption Fund A/c
Profit & Loss Appropriation A/c
General Reserve A/c
Sinking Fund A/c
33. When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue ?
Debentures A/c
Premium on Redemption of Debentures A/c
Loss on Issue of Debentures A/c
Profit & Loss A/c
34. According to SEBI guidelines what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redumption of debentures, in case of convertible debentures ?
25%
50%
100%
zero
35. Profit on redemption of debentures in transferred to which account ?
Capital Reserve Account
Sinking Gund Account
General Reserve Account
Profit & Loss Account
36. Profit on cancellation of own debentures is :
Revenue Profit
Capital Profit
Operating Profit
Trading Profit
37. 6,000 debentures of ₹ 10 each where discharged by issuing equity shares of ₹ 10 each at 20% premium. The number of shares issued will be :
50,000
60,000
5,000
6,000
38. Every company required to create DRR shall on or before the 30th April of each year, deposit or invest, a sum which shall not be less than…………of the amount of its debentures maturing (to be redeemed) during the year ending on 31st March of the next year.)
10%
15%
25%
50%
39. A Sinking Fund is a part of:
Fixed Liabilities
Current Liabilities
Reserves and Surplus
Fixed Assets
40. A company issued 1000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for :
Rate of Dividend
Rate of Tax
Rate of Interest
None of these
41. BST Ltd. want to redeem its 900, 10% debentures at 105% by converting them into shares of ₹ 10 each at ₹ 9 each. The number of shares to be issued will be :
9,000 Shares
10,500 Shares
10,000 Shares
8,500 Shares
42. Premium on Redemption of Debentures A/c is in the nature of:
Personal A/c
Real A/c
Nominal A/c
None of these
43. Deep Ltd. issue 10,00,000, 7 % debentures of 100 Rs. each at a discount of 4%, redeemable after 5 years at a premium of 6%. Loss issue of debentures is :
₹ 10,00,000
₹ 6,00,000
₹ 16,00,000
₹ 4,00,000
44. Debenture is a :
Loan certificate
Cash certificate
Credit certificate
None of these
45. Debenture holders are the :
Customers of the Company
Owners of the Company
Creditors of the Company
None of these
46. In case of issue of debentures as a collateral security for loan from the bank which account will be debited :
Bank Account
Bank Loan Account
Debentures Account
Debentures Suspense Account
47. If debentures of ₹ 4,50,000 are issued for the consideration of net assets of ₹ 5,00,000 balance ₹ 50,000 will be credited to:
Profit & Loss A/c
Goodwill A/c
General Reserve A/c
Capital Reserve A/c
48. Debentures which are transferred by mere delivery are called:
Registered Debentures
First Debentures
Bearer Debentures
None of these
49. In the Balance Sheet of a Company, Debentures are shown under the head :
Unsecured Loans
Long-term Loans
Current Liabilities
Reserve and Surplus
50. Discount on issue of Debentures is in the nature of:
Revenue Loss
Capital Loss
Deferred Revenue Expenditure
None of there
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