Redemption Of Debentures CBSE Questions & Answers

Redemption of debentures is concerned with

Methods of redemption of debenture:-

Debentures cannot be redeemed purely:

When a company purchases its own debentures through stock exchanges for the purposes of cancellation, such an act of purchasing and cancelling the debentures constitutes redemption of debentures Which method of redemption is mentioned in the following statement

When the company pays the whole amount in one lump sum, which account should be debited If debentures are to be redeemed at par and amount is paid to debenture holder account

As per the latest provisions of The Companies Act the company must sets aside a portion of profits every year and transfer it to which account for redemption of debentures until the debentures are redeemed

A company shall create Debenture Redemption Reserve equivalent to at least 50% of the amount of debenture issue before starting the redemption of debentures. The above guidelines is given by

DRR created by company must be 50 % of debt except for

The Debenture Redemption Reserve account appears on the liability side of the Balance sheet under the head

When Debenture Redemption Reserve is created, redemption of debentures is termed as redemption out of profits. Otherwise, it is treated as redemption

P ltd. issued 20000: 10 percent debentures 100 each at a premium of 8 percent on 30th June, 2012. The issue was fully subscribed. No amount of DRR is to be created before redemption of debentures till date because

A company can create 100 percent DRR if redemption is purely out of __________

What amount should be transferred to Profit and Loss Appropriation account to DRR at the time of convertible debentures into share or new debentures

Debenture Redemption Reserve should be transferred to General Reserve at the time of _____

Sometimes company can purchase the debentures at more than the redeemable value due to the following reasons :