B.

com 6 sem
Financial Accounts V
Unit 3
Multiple choice questions with single correct answer
1. On 1st may 2020 Mr. Mahesh purchased 200, 12% debentures of Rs. 100 each, at rate of Rs.
95 each cum interest price. Interest due on 30th June and 31st dec every year. Calculate the
amount debited in investment A/c.
a. Rs. 19,000
b. Rs. 18,200
c. Rs. 800
d. Rs. 19,200
Ans : b. 18,200
2. Mr. Suresh sale 1000 12% Debentures of Rs. 100 each at rate of Rs. 99 each on cum interest
price to Mr. Mahesh on 31st Dec 2020. Mr Suresh close his books of account on 31st Dec
every year. Calculate amount of interest credited in the books of Mr. Suresh
a. Rs. 6,000
b. Rs. 93,000
c. Rs. 12,000
d. Rs. 99,000
Answer : c. Rs. 12,000
3. On 1st Dec 2020 Sandeep purchased 200 12% debentures of Rs. 100 each @ Rs. 104 each ex
interest. He paid ½% brokerage in this connection. Interest is payable on 30th June and 31St
December. Calculate amount paid by purchaser to seller.
a. Rs. 20,900
b. Rs. 20,904
c. Rs. 21,800
d. Rs. 21,900
Answer : c. 21,800

Multiple choice questions with two/multiple correct answer

4. On 1st December 2020, Mr. Rohit purchased 600, 6% debentures of Rs. 100 each at the rate of
Rs. 104 each ex interest from Mr. Rahul. Brokerage paid 1/4 % on purchase value by
purchaser. Calculate the purchase value of investment and brokerage amount for Mr. Rohit.
a. Rs. 62,550
b. Rs. 150
c. Rs. 156
d. Rs. 62,556
Answer : d. Rs. 62556 & c. Rs. 156
5. On 1st November 2020, Vijay sold 80, 9% debentures of Rs. 100 each @ Rs. 120 ex interest
to Ajay. Interest is payable on 30th June and 31st December each year. Calculate the amount
of interest credited in Profit & Loss A/c in the books of Vijay and Ajay who close their books
on 31st December every year
a. Rs. 144
b. Rs. 600
c. Rs. 720
 d. Rs. 120
Answer : a. Rs. 600 & d. Rs.120
6. On 1st October 2020, Mr. Rajanikant sold 200, 10% Debenture @ Rs. 120 per debenture to
Ms. Shanaya. The debenture is sold at cum interest price and face value of debenture is Rs.
100 each. Interest due on these debenture is 30th June and 31st December. What will be the
face value of debentures and Profit on sale of Debenture ?
a. Rs. 20,000
b. Rs. 24,000
c. Rs. 3,500
d. Rs. 4,000
Answer : a. Rs. 20,000 & c. Rs. 3,500

Multiple choice questions with all of the above correct answer

7. Mr. A sold 100, 10% debenture @ Rs.100 each to Mr. B on 30th June 2020. The interest is
payable on 31st March & 30th September. From the following select the necessary ledger
accounts in the books Mr. A.
a. Investment/ debenture A/c
b. Bank A/c
c. Interest A/c
d. All of the above
Answer : d. All of the above
8. Guptaji sold 200, 12% Debentures @ Rs. 120 per debenture to Mr. Thakur on 12th May 2020.
The interest is payable on 31st May & 30th November. Which necessary accounts should be
created in the books of buyer
a. Investment/ Debenture A/c
b. Bank A/c
c. Interest A/c
d. All of the above
Answer : d. All of the above
9. On 1st May 2020 Motu sold 200, 11% debentures of Rs. 100 each @120 ex interest. The
interest is payable on 30th June and 31st December. Buyer & seller close their books on 31st
December every year. From the following select correct option for above sentence
a. Face value of debentures Rs. 20,000
b. Interest of Rs. 733 will be credited to P&L A/c in the books of seller.
c. Cost price of debentures for purchaser is Rs. 24,000
d. All of the above
Answer : d. All of the above

Multiple choice question with both of above correct answer

10. Mr. x sold 300, 5% debentures of Rs. 100 each @ Rs. 125 each. The debentures is sold on 31st
May 2020 at ex interest. What will be the face value and selling price of debentures
a. Face Value Rs. 30,000
b. Selling price Rs. 37,500
c. Both of the above
d. None of the above
Answer : c. Both of the above
11. Mr. x sold 200, 12% bonds Rs.100 each @ Rs. 110 to Mr. Y. Mr. X can sold bonds to Mr. Y
a. On ex interest price
b. On cum interest price
c. Both the above
 d. None of the above
Answer : c. Both the above
12. On 1st Dec 2020 Mr. Ram sold 100 shares to Mr. Y. Face value of share is Rs. 10 each and
Mr. Ram sold shares to Mr. Y @ Rs. 50per share. Which ledger account should be made in
the books of Ram.
a. Investment A/c
b. Bank A/c
c. Both of the above
d. None of the above
Answer : Both of the above

Multiple choice question withs with none of the above correct answer
13. Ms. Radha sold 200 shares to Ms. Rukmini @ Rs. 100 each on 31st March 2021. From the
following which is correct
a. Ms. Radha is buyer
b. Ms. Rukmini is Seller
c. Both of the above
d. None of the above
Answer : d. None of the above
14. Mr. R sold 200, 3% debenture to Mr. P @ Rs.100 each. The debentures is sold on 31st March
2021. The interest is payable on 31st May & 30th November. From the following choose the
correct answer for above sentence.
a. Mr. R can sold debentures only ex interest
b. Mr. R can sold debentures only cum interest
c. Both the above
d. None of the above
Answer : d. None of the above
15. On 1st October 2020, Mr. Vijay sold 200 15% debentures of Rs. 90 each at the rate of Rs. 100
each. The debenture is sold on cum interest price. Interest is due on 30th June and 31st
December. What will be the face value and interest on debenture?
a. Face value is Rs. 20,000
b. Interest is Rs. 3,000
c. Both (a) & (b) are correct
d. None of the above
Answer : d. None of the above

Fill in the blanks with two options

16. On 1st Nov 2020 Mr. x sold 100, 12% debentures of Rs. 100 each @ 120 each.
Face value of debenture is _______
a. Rs. 10,000
b. Rs. 12,000
Answer : a. Rs. 10,000
17. Mr. Ram hold 100, 10% debentures of Rs. 120 each. Interest is paid on half yearly basis.
Total amount of interest is credited in P&L A/c______
a. Rs. 600
b. Rs. 1,200
Answer : b. Rs 1,200
18. On 1st September 2020 Mr R sold 100, 13% Bonds @ Rs. 100 each to Mr. P. The Interest is
payable on 31st March and 30th September. The next interest is payable on _______
 a. 31st March
b. 30th September
Answer : b. 30th September

Fill in the blanks with four options

19. Mr. x sold 200, 12% debentures of Rs. 100 each @ Rs 125 each. Face value of each
debenture is _________
a. Rs. 20,000
b. Rs. 200
c. Rs. 100
d. Rs. 25,000
Answer : c. Rs. 100
20. Mr. Y. purchased 300, 12% Gov bonds of Rs. 100 each at premium Rs. 25 each. Face value
of debenture will be______
a. Rs. 30,000
b. Rs. 7,500
c. Rs. 37,500
d. Rs, 3,600
Answer : a. Rs. 30,000
21. Mr. X purchased 200, 12% Debentures of Rs. 100 each. Amount of interest received will be
__________
a. Rs. 2,000
b. Rs. 2,400
c. Rs. 1,200
d. None of the above
Answer : b. Rs. 2,400

True and false type questions

22. If Mr A sold 120 shares @ 100 each share to Mr. B. Mr A can sale their shares only on cum
dividend
a. True
b. False
Answer : b. False
23. If Mr. Ashok purchase 200, 12% debentures of Rs. 100 each at the rate of Rs.105 each. The
face value of debentures is Rs. 20,000.
a. True
b. False
Answer : a. True
24. Mr. T hold 200 12% debentures @ 100 each of HMT ltd. The Interest is Payable on 31st
March & 30th September. Mr. T received interest of Rs. 2,400 on 31st March
a. True
b. False
Answer : b. False

Answer in one word

25. Mr A. hold 2000, 12% debentures of Rs. 1000 each. Return received on such debentures is
called
a. Profit
b. Interest
 c. Dividend
d. Amount
Answer : b. Interest
26. Mr. B hold 2000 shares of Rs. 20 each of XYZ ltd. Return received on investment in share is
called
a. Share of profit
b. Bonus share
c. Dividend
d. Interest
Answer : c. Dividend
27. ABC Ltd Issue 12,000 shares as free of cost to its existing shareholder out of companies free
reserve of Rs. 1,20,000. The share issue free of cost to its existing shareholder is called
a. Dividend
b. Right shares
c. Bonus shares
d. Profit shares
Answer : c. Bonus shares

Match the pairs

Column ‘A’ Column ‘B’
28. Return on shares of Rs. 20,000 a. Interest
29. Return on Debentures Rs. 10,000 b. Right Shares
30. 20,000 shares issued free of cost to c. Dividend
Existing shareholders
31. Shares issued at discount to its d. Bonus Shares
existing shareholders @ Rs. 10 per share

a. 1-c 2-d 3-b 4-a

b. 1-c 2-a 3-d 4-b
c. 1-b 2-c 3-d 4-a
d. 1-a 2-b 3-c 4-d
Answer : b. 1-c 2-a 3-d 4-b

Concept based questions

32. If Mr. A purchase 20000 10% preference share on 1st March 2020 @ Rs. 10 per share. The
dividend is payable on 30th June. Mr A close his books on 31st March every year. Calculate
dividend receivable for F.Y. 2020-21
a. Rs. 20,000
b. Rs. 2,00,000
c. Rs. 18,333
d. Rs. 1667
Answer : a. Rs. 20,000
33. Mr X purchase 10000, 10% debentures @ Rs. 10 per debenture on 31st may 2020. Interest is
payable 30th June and 31st December every year. Calculate interest amount paid to seller.
a. Rs. 4167
b. Rs. 833
c. Rs. 5,000
d. Rs. 10,000
Answer : a. Rs. 4,167
34. Mr Shailendra sales 20000, 10% Debentures @ Rs. 10 each to Mr. Rahul on 30th June 2020.
Seller paid 1% brokerage. Interest is paid on 31st December and 30th June every year.
Calculate the amount received by seller
a. Rs. 2,00,000
b. Rs. 1,98,000
c. Rs. 2,02,000
d. Rs. 1,00,000
Answer : b. Rs. 1,98,000