All Courses
Get the App Signup / Login
Sign in Open App
Commerce Exam  >  Commerce Tests  >  Accountancy Class 12  >  Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Commerce MCQ

Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Commerce MCQ


Test Description

7 Questions MCQ Test Accountancy Class 12 - Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions

Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions for Commerce 2024 is part of Accountancy Class 12 preparation. The Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions below.
Solutions of Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions questions in English are available as part of our Accountancy Class 12 for Commerce & Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions solutions in Hindi for Accountancy Class 12 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions | 7 questions in 14 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Accountancy Class 12 for Commerce Exam | Download free PDF with solutions
Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 1
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Sarita Pvt. Ltd. issued 15% 10,000 debentures at par @ Rs. 100 per debenture. The company suffered a loss but still the directors of the company paid interest on debentures.

Reason (R): Interest on debenture is a charge against profits and therefore, its payment is not subject to the earning of profit.

Detailed Solution for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 1
Interest on debenture is to be paid even if the company suffers a loss.
Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 2
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): The ‘discount on debentures’ issuance is charged to ‘Securities Premium Account’ and is reflected as an asset.

Reason (R): The ‘discount on debentures’ issuance is noted as a capital loss side as a fictitious asset. Hence, has to be written off during the years of its issue.

Detailed Solution for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 2
The ‘discount on debentures’ issuance is noted as a capital loss and is charged to ‘Securities Premium Account’ and is reflected in the asset side as a fictitious asset. Hence, has to be written off during the year of its issue.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 3
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.

Reason (R): Debenture holders have voting rights.

Detailed Solution for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 3
Issue of debenture does not result in dilution of interest of equity shareholders as they do not have the right either to vote or to take part in the management of the company.
Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 4
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Debenture holders are the creditors of the company carrying a fixed rate of interest.

Reason (R): Debentures are short-term loans taken from the public.
Detailed Solution for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 4
If a company needs funds for extension and development purposes without increasing its share capital, it can borrow from the general public by issuing certificates called debentures for a fixed period of time and at a fixed rate of interest. Debenture is a long-term debt instrument.
Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 5
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): The Bank account is debited when the money is received for debentures.

Reason (R): Bank being a real account needs to be debited when something comes in.
Detailed Solution for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 5
When debentures are issued at premium, the amount of premium is credited to Debenture Premium Account. Debenture Premium Account is a capital profit and is transferred to Capital Reserve Account. When debentures are issued at discount, the amount of discount is debited to 'Discount on Issue of Debentures Account.
Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 6
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Debentures saves income tax.

Reason (R): Interest on debenture is tax deductible expenditure.
Detailed Solution for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 6
Tax saving bonds enjoy special privileges under Section 80CCF of the Income Tax Act which states that individuals enjoy tax deductions up to Rs 20,000 on the bonds owned by them. This deduction is excluding the Rs 1.5 lakh provided under Section 80C of the Act.
Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 7
Save

Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Assertion (A): Debenture holders do not enjoy any voting right.

Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.
Detailed Solution for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions - Question 7
Debenture holders are only the creditor of the company as debentures are the part of loan.
42 videos|168 docs|43 tests
Join Course
Information about Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions Page
In this test you can find the Exam questions for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Issue and Redemption of Debentures- Assertion & Reason Type Questions, EduRev gives you an ample number of Online tests for practice

Top Courses for Commerce

42 videos|168 docs|43 tests
Join Course
Download as PDF

Top Courses for Commerce

Important Questions for Issue and Redemption of Debentures- Assertion & Reason Type Questions

Find all the important questions for Issue and Redemption of Debentures- Assertion & Reason Type Questions at EduRev.Get fully prepared for Issue and Redemption of Debentures- Assertion & Reason Type Questions with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Issue and Redemption of Debentures- Assertion & Reason Type Questions syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Issue and Redemption of Debentures- Assertion & Reason Type Questions resources.

Issue and Redemption of Debentures- Assertion & Reason Type Questions MCQs with Answers

Prepare for the Issue and Redemption of Debentures- Assertion & Reason Type Questions within the Commerce exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Issue and Redemption of Debentures- Assertion & Reason Type Questions Accountancy Class 12

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Issue and Redemption of Debentures- Assertion & Reason Type Questions with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup