In NCERT Class 12 Accountancy Chapter 6, titled "Issue and Redemption of Debentures", students learn about the procedures and accounting treatment related to debentures. The chapter includes the issue of debentures at par, premium, and discount, the redemption of debentures, interest on debentures, and the methods of redemption, such as lump-sum payment, installment, and purchase in the open market.
This article provides a comprehensive resource for exam preparation. It includes sample MCQs and subjective questions for CBSE and CUET, alongside downloadable PDFs of Class 12 Accountancy Chapter 6 MCQs and previous year questions for detailed practice of NCERT Class 12 Issue and Redemption of Debentures.
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NCERT Class 12 Accountancy Chapters
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CUET Free Master Classes:
Class 12 Accountancy Chapter 6 MCQs
This question bank includes previous years' CUET and CBSE MCQs, along with questions curated by subject experts. Below are 5 sample multiple-choice questions (MCQs) for Class 12 Accountancy Chapter 6: Issue and Redemption of Debentures. For the full set of 50 questions, download the PDF using the link provided below.
1- The debentures which are payable on the expiry of a specified period either in lump-sum or in instalments during the lifetime of the company are known as:
(a) Secured debentures (b) Specific coupon rate debentures
(c) Redeemable debentures (d) Convertible debentures
2. The Debentures that are payable on the expiry of the specific period either in lumpsum or in installments during lifetime of the company are called:
(a) Secured Debentures (b) Redeemable Debentures
(c) Perpetual Debentures (d) Specific Coupon Rate Debentures
3. Naked debenture are also known as:
(a) Perpetual debentures (b) Deep Discount Bond
(c) Mortgage debenture (d) Unsecured debenture
4. Debenture which are transferable by mere delivery are:
(a) Registered debentures (b) First debentures
(c) Bearer debentures (d) Second debentures
5. What are different types of debentures from the viewpoint of registration
A. Convertible B. Bearer C. Redeemable D. Secured E. Registered
Choose the correct answer from the options given below:
(a) A & E only (b) B & C only (c) B & E only (d) C & D only
Class 12 Accountancy Chapter 6 Subjective Questions Without Solutions
This question bank includes previous years' CBSE subjective questions (2 marks and above) without solutions, along with expert-curated questions. Below are 5 sample subjective questions for Class 12 Accountancy Chapter 6: Issue and Redemption of Debentures. To access all questions, download the PDF from the link provided below.
- M Ltd. issued 10,000, 8% Debentures of Rs. 100 each at 6% discount. The amount was payable as Rs. 60 on application and the balance on allotment. All money was duly received.
Pass necessary journal entries in the books of M Ltd.
(CBSE 2023, 3M)
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- X Ltd. invited applications for issuing 15,000, 8% Debentures of Rs. 100 each. The amount was payable as follows :
On Application- Rs. 20 per Debenture
On Allotment- Balance
Applications for 30,000 Debentures were received. Applications for 5,000 Debentures were rejected and the application money was refunded to the applicants. Prorata allotment was made to the remaining applicants. Excess money received from applications was adjusted towards sums due on allotment. The remaining allotment money was duly received.
Pass necessary journal entries for the above transactions in the books of X Ltd.
(CBSE 2022, 3M)
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- Amay Ltd. invited applications for issuing 10,000, 8% debentures of Rs. 100 each. The amount was payable as follows :
Rs. 30 on application and Rs. 70 on allotment. The public applied for 12,000 debentures. Applications for 8,000 debentures were accepted in full; applications for 3,000 debentures were allotted 2,000 debentures and the remaining applications were rejected. All money was duly received.
Pass the necessary journal entries in the books of the company for the above transactions.
(CBSE 2022, 3M)
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- Garvit Ltd. invited applications for issuing 3,000, 11% Debentures of Rs. 100 each at a discount of 6%. The full amount was payable on application. Applications were received for 3,600 debentures. Applications for 600 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants.
Pass the necessary journal entries for the above transactions in the books of Garvit Ltd.
(CBSE 2019, 3M)
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- Shovan Limited took over the assets of Rs. 60,00,000 and liabilities of Rs. 10,00,000 from Swami Limited for an agreed purchase consideration of Rs. 45,00,000. The amount was payable by issuing 10% debentures of Rs. 100 each at 25% premium.
Pass necessary journal entries for the above transactions in the books of Shovan Limited.
(CBSE 2023, 3M)
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Sub Areas of Chapter 6: Issue and Redemption of Debentures
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Chapter Name
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Sub Topics
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Issue and Redemption of Debentures
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6.1 Introduction
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6.2 Types of Debentures
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6.3 Issue of Debentures
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6.4 Interest on Debentures
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6.5 Redemption of Debentures
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6.6 Lump-sum Payment Method
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6.7 Installment Payment Method
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6.8 Purchase in the Open Market
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Review of NCERT Class 12 Accountancy Chapter 6
In NCERT Class 12 Accountancy Chapter 6, "Issue and Redemption of Debentures," students learn about the comprehensive accounting procedures related to debentures, including their issue, interest payment, and redemption. The chapter provides critical insights into financial management in companies.
Mastering this chapter helps students understand corporate financing and prepares them for questions in CBSE, CUET, and other competitive exams. By practicing MCQs and subjective questions, students can strengthen their accounting concepts effectively.
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