Matching Type MCQs of Redemption of Debenture with Answers

Matching Type MCQs of Redemption of Debenture with Answers

Matching Type Multiple Choice Questions of Redemption of Debenture with Answers

Let’s Practice

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Issue of Debentures at Discount and redeemable at par.	I. Unlisted (Other than NBFC and HFC) Companies.
B. Issue of Debentures at Discount and redeemable at premium.	II. On or before 30th April of the current year.
C. Transfer of profit to DRR	III. Discount on Issue of Debentures Account
D. Investment in DRI	IV. Loss on Issue of Debentures Account.

Choose the correct option:

a) A-IV, B-III, C-II and D-1
b) A-III, B-IV, C-I and D-II
c) A-III, B-IV, C-II and D-I
d) A-III, B-I, C-II and D-IV

Ans – b)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Investment in DRI	I. All companies except All India Financial Institutions, Banking Companies, Other Financial Institutions and Unlisted (NBFC and HFC) Companies.
B. Realisation of DRI	II. Investment proportionate to debentures redeemed.
C. Transfer of profit to DRR is made by	III. Listed Companies
D. Transfer to DRR is not made by	IV. Unlisted Companies

Choose the correct option:

a) A-IV, B-III, C-II and D-I
b) A-I, B-IV, C-II and D-III
c) A-I, B-II, C-IV and D-III
d) A-II, B-I, C-III and D-IV

Ans – c)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. All debentures redeemed together	I. Redemption of debentures at premium.
B. Debentures redeemed in instalments	II. Redemption in lumpsum.
C. Debentures of nominal (face value of ₹ 100 redeemed at ₹ 110	III. Redemption by Draw of Lots
D. Debentures of nominal (face) value ₹ 100 redeemed at ₹ 100	IV. Redemption of debentures at par.

Choose the correct option:

a) A-II, B-III, C-I and D-IV
b) A-II, B-III, C-IV and D-I
c) A-II, B-IV, C-I and D-III
d) A-II, B-I, C-III and D-IV

Ans – a)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Redemption out of Capital	I. Debentures Redemption Reserve
B. Redemption out of profit	II. a specific reserve
C. Debenture Redemption Reserve	III. Amount is not transferred to Debentures Redemption Reserve
D. Dividend can not be paid from.	IV. Amount is transferred to Debentures Redemptoin Reserve.

Choose the Correct Option:

a) A-III, B-IV, C-I and D-II
b) A-III, B-I, C-II and D-IV
C) A-III, B-IV, C-II and D-I
d) A-II, B-I, C-III and D-IV

Ans – c)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Profit is not transferred to Debenture Redemption Reserve	I. All India Financial Institution regulated by RBI
B. Profit is transferred to Debentures Redemption Reserve	II. Unlisted (Other than NBFC and HFC) Companies
C. Debenture Redemption Reserve	III. Used for redemption of debentures only.
D. Dividend can not be paid from.	IV. Debentures Redemption Reserve.

Choose the correct option:

a) A-I, B-II, C-III and D-IV
b) A-I, B-II, C-IV and D-II
c) A-II, B-I, C-III and D-IV
d) A-II, B-I, C-IV and D-III

Ans – a)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Debentures Redemption Reserve after redemption of debentures	I. Debentures Redemption Reserve
B. Amount transferred to Debentures Redemption Reserve before redemption of debentures should be at least.	II. General Reserve
C. After redemption of debentures, amount proportionate to debentures redeemed should be transferred to.	III. 10% of the Outstanding Debentures.
D. Amount can be transferred from General Reserve and/or Dividend Equalisation Reserve and/or Surplus i.e., Balance in Statement of Profit & Loss to	IV. 10% of the Outstanding Debentures yet to be redeemed.

Choose the correct option:

a) A-IV, B-III, C-I and D-II
b) A-IV, B-I, C-II and D-IV
c) A-IV, B-II, C-I and D-III
d) A-IV, B-III, C-II and D-I

Ans – d)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Investment in specified securities.	I. Shares and Debentures of companies.
B. Investment in specified securities can not be in	II. Banking Companies
C. Investment in specified securities is to be made	III. On or before 30th April of the financial year ni which debentures are to be redeemed.
D. Investment in specified securities is not made by	IV. 15% of the Debentures that are to be redeemed by 31st March or next year.

Choose the correct option:

a) A-I, B-IV, C-III and D-II
b) A-IV, B-I, C-III and D-II
c) A-IV, B-II, C-I and D-III
d) A-IV, B-III, C-III and D-I

Ans – b)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Investment in specified securities	I. at least 15% of the debentures to be redeemed by 31st March of next year.
B. Listed Companies	II. are not required to transfer profit to Debentures Redemption Reserve.
C. Unlisted (NBFC and HFC) Companies.	III. are not required to invest in specified securities.
D. Bank Deposits	IV. Specified Securities

Choose the Correct Option:

a) A-I, B-II, C-IV and D-III
b) A-I, B-III, C-II and D-IV
c) A-I, B-II, C-III and D-IV
d) A-I, B-III, C-II and D-I

Ans – c)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Redemption of Debentures	I. If redemption is by conversion into shares or new debentures.
B. Profit is not transferred to DRR.	II. in cash or by conversion into shares or new debentures.
C. Part redemption of debentures	III. balance in Debentures Redemption Reserve is transferred to General Reserve
D. Redemption of debentures in lumpsum.	IV. Proportionate amount is transferred from Debentures Redemption Reserve to General Reserve.

Choose the correct option:

a) A-II, B-I, C-IV and D-III
b) A-II, B-I, C-III and D-IV
c) A-II, B-IV, C-I and D-III
d) A-II, B-IV, C-I and D-III

Ans – a)

Choose the correct option that matches the entries (items) in Column I with entries (Items) in Column II:

Column I	Column II
A. Redemption of Debentures at premium in lumpsum.	I. Debentures are redeemed in lumpsum.
B. Total investment in Debentures Redemption Investment is realised.	II. Balance in Debentures Redemption Reserve is transferred to General Reserve.
C. Redemption of debentures in parts, investment in specified securities should not be	III. less than 15% of the debentures yet to be redeemed by 31st March of next year.
D. Debentures are redeemable at premium, Investment in specified securities is	IV. 15% of nominal (face) value of the debentures to be redeemed.

Choose the correct option:

a) A-II, B-III, C-IV and D-I
b) A-II, B-III, C-I and D-IV
c) A-II, B-I, C-IV and D-III
d) A-II, B-I, C-III and D-IV

Ans – d)