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Issue and Redemption of Debentures — Practice Quiz

Madhya Pradesh Board · Class 12 · Accountancy

Try a 4-question quiz on Issue and Redemption of Debentures for Madhya Pradesh Board Class 12 Accountancy: tap an answer to check it and see why.

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An illustration showing a company issuing a debenture certificate to an investor, highlighting it as an acknowledgement of debt, with key terms like 'interest rate', 'repayment period', and 'company s
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Quick Quiz: Issue and Redemption of Debentures

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1

What is the meaning of the word 'debenture'?

2

The return on debentures is called:

3

Debentures represent which type of capital?

4

Which type of debentures are payable only on winding up of the company?

98 Questions·
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Sample Questions

1multiple correct

Which of the following are characteristics of debentures?

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Written acknowledgment of debt, Fixed rate of interest, Repayment of principal after specified period

Debentures are written acknowledgments of debt with fixed interest rates and specified repayment periods. Unlike shares, debentures do not carry voting rights and pay interest (not dividends).

2multiple choice

When debentures are issued at Rs. 95 for a face value of Rs. 100, they are issued:

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At discount

When debentures are issued below their face value (Rs. 95 for Rs. 100), they are issued at discount. The difference of Rs. 5 is the discount.

3multiple correct

Which of the following are methods of redemption of debentures?

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Payment in lump sum, Payment in installments, Purchase in open market, Conversion into shares

There are four main methods of redemption: lump sum payment, installment payments, purchase from open market, and conversion into shares or new debentures.

4multiple choice

Zero coupon rate debentures are issued:

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At substantial discount

Zero coupon rate debentures do not carry specific interest rate, so they are issued at substantial discount to compensate investors. The difference between nominal value and issue price serves as interest.

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Frequently Asked Questions

What are the important topics in Issue and Redemption of Debentures for Madhya Pradesh Board Class 12 Accountancy?
Key topics in Issue and Redemption of Debentures include Meaning and Nature of Debentures, Distinction Between Shares and Debentures, Types of Debentures, Issue of Debentures. Study these first, then practise questions on each for the Madhya Pradesh Board Class 12 board exam.
How many practice questions are there for Issue and Redemption of Debentures?
There are 98 questions on Issue and Redemption of Debentures. Try the 4-question sample quiz on this page first; each answer shows an explanation when you tap it.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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