Assertion Reason MCQs of Redemption of Debenture with Answers
Assertion Reason MCQs of Redemption of Debenture with Answers
Assertion Reason Multiple Choice Questions of Redemption of Debenture with Answers
Lets Practice
Assertion (A): Debenture Redemptoin Reserve is created out of the profits of the company available for payment of dividend.
Reason (R): Debenture Redemption Reserve is created for the purpose of redemption of debentures.
In the context of above two statements, which of the above below is correct?
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is Incorrect and Reason (R) is correct.
(d) Assertion (A) is correct and Reason (R) is Incorrect.
Ans – b)
Assertion (A): On redemption of the debentures, Debenture Redemption Reserve proportionate to debentures redeemed is transferred to General Reserve.
Reason (R): Without General Reserve, company can not redeem the debentures.
In the context of above two statements, which of the above below is correct?
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is Incorrect and Reason (R) is correct.
(d) Assertion (A) is correct and Reason (R) is Incorrect.
Ans – d)
Assertion (A): Debenture Redemption Reserve is created before redemption of debentures.
Reason (R): Listed company can not redeem its debentures without creating Debenture Redemption Reserve.
In the context of above two statements, which of the above below is correct?
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is Incorrect and Reason (R) is correct.
(d) Assertion (A) is correct and Reason (R) is Incorrect.
Ans – d)
Assertion (A): Debenture Redemption Reserve is shown under the head ‘Shareholders’ Funds’ and Sub-head ‘Reserves and Surplus’ in the Balance Sheet.
Reason (R): Debenture Redemption Reserve belongs to shareholders.
In the context of above two statements, which of the above below is correct?
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is Incorrect and Reason (R) is correct.
(d) Assertion (A) is correct and Reason (R) is Incorrect.
Ans – d)
Assertion (A): Every company which is required to create Debenture Redemption Reserve (DRR) shall on or before 30th April in each year, invest or deposit as the case may be, at least 15% of the nominal value of the debentures maturing during the year ended 31ts March of the next year.
Reason (R): The amount invested or deposited shall not be used for any purpose other than redemption of debentures.
In the context of above two statements, which of the above below is correct?
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is Incorrect and Reason (R) is correct.
(d) Assertion (A) is correct and Reason (R) is Incorrect.
Ans – a)
