Accountancy MCQ Class 12 Chapter 7: Check the below NCERT MCQ Questions for Accountancy MCQ Class 12 Chapter 7 with Answers Pdf free download. Accountancy MCQ Class 12 Chapter 7 Questions for Accountancy with Answers were prepared based on the latest exam pattern. We have provided Accountancy MCQ Class 12 Chapter 7 with Answers to help students understand the concept very well.

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Accountancy MCQ Class 12 Chapter 7

1. Premium on redemption of debentures is a :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) Suspense A/c

2. Premium on redemption of debentures is generally provided at the time of _______.
(a) Issue of debentures
(b) Redemption of debentures
(c) Writing off
(d) After 10 years

3. When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to _______.
(a) Profit and loss A/c
(b) Debenture application and allotment A/c
(c) Loss on the issue of debentures A/c
(d) Premium on redemption A/c

4. Debentures cannot be redeemed at:
(a) Par
(b) Premium
(c) Discount
(d) More than 10% premium

5. In case of the issue of debentures as collateral security for a loan from the bank, which account will be debited?
(a) Bank account
(b) Bank loan account
(c) Debentures account
(d) Debentures suspense account

6. If debentures purchased in open market are not immediately cancelled, they are treated as :
(a) Current Assets
(b) Current Liabilities
(c) Investment
(d) Capital

7. 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?
(a) Debentures A/c
(b) Premium on redemption of debentures A/c
(c) Loss on the issue of debentures A/c
(d) Profit and loss A/c

8. A company issued 1,000, 12% debentures of ₹ 100 each at 10% premium. 12% stand for:
(a) Rate of dividend
(b) Rate of Tax
(c) Rate of interest
(d) None of these

9. Sources of finance of the redemption of debentures are:
(a) Redemption out of profits
(b) Redemption out of capital
(c) The proceeds from fresh issue of shares/debentures
(d) All the above

10. Premium on redemption of debentures A/c is in the nature of ______.
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of the above

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