MCQ - Issue of Debentures | Accounting for CA Foundation PDF Download

 Page 1


CPT Fundamentals of Accounting Chapter 9 Unit 4 
Presented by : CA .Sanket Shah 
 
 
Page 2


CPT Fundamentals of Accounting Chapter 9 Unit 4 
Presented by : CA .Sanket Shah 
 
 
MCQ's 
Page 3


CPT Fundamentals of Accounting Chapter 9 Unit 4 
Presented by : CA .Sanket Shah 
 
 
MCQ's 
A debenture holder is an 
owner of the company 
A debenture holder can 
get his money back only 
on the liquidation of the 
company 
A debenture issued at a 
discount can be 
redeemed at a premium 
A debenture holder 
receives interest only in 
the event of profits 
? 
? 
? 
? 
Debenture holders are  creditors of  
the co; not owner of the co. 
 
In redeemable Debentures : Life is 
decided at the time of issue. 
Statement is Correct Interest is compulsory expenditure  even 
in loss.  
 
A 
B 
D 
C 
Page 4


CPT Fundamentals of Accounting Chapter 9 Unit 4 
Presented by : CA .Sanket Shah 
 
 
MCQ's 
A debenture holder is an 
owner of the company 
A debenture holder can 
get his money back only 
on the liquidation of the 
company 
A debenture issued at a 
discount can be 
redeemed at a premium 
A debenture holder 
receives interest only in 
the event of profits 
? 
? 
? 
? 
Debenture holders are  creditors of  
the co; not owner of the co. 
 
In redeemable Debentures : Life is 
decided at the time of issue. 
Statement is Correct Interest is compulsory expenditure  even 
in loss.  
 
A 
B 
D 
C 
A real account 
A nominal account – 
income 
A personal account 
A nominal account – 
expenditure 
? 
? 
? 
? 
Belongs to shareholder’s so personal a/c 
 
A 
B 
D 
C 
Page 5


CPT Fundamentals of Accounting Chapter 9 Unit 4 
Presented by : CA .Sanket Shah 
 
 
MCQ's 
A debenture holder is an 
owner of the company 
A debenture holder can 
get his money back only 
on the liquidation of the 
company 
A debenture issued at a 
discount can be 
redeemed at a premium 
A debenture holder 
receives interest only in 
the event of profits 
? 
? 
? 
? 
Debenture holders are  creditors of  
the co; not owner of the co. 
 
In redeemable Debentures : Life is 
decided at the time of issue. 
Statement is Correct Interest is compulsory expenditure  even 
in loss.  
 
A 
B 
D 
C 
A real account 
A nominal account – 
income 
A personal account 
A nominal account – 
expenditure 
? 
? 
? 
? 
Belongs to shareholder’s so personal a/c 
 
A 
B 
D 
C 
At maturity, debenture 
holders get back their money 
as per the terms and 
conditions of redemption 
Debentures can be 
forfeited for non 
payment of call money 
In company's balance 
sheet, debentures are 
shown under secured 
loans 
Interest on debentures is 
charged against profits 
? 
? 
? 
? 
Debentures cannot be forfeited if call 
money not paid. Co has to return 
allotment money in that case. 
B 
D 
C 
A