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प्रश्न
What is meant by redemption of debentures out of Capital?
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उत्तर
Redemption out of capital occurs when no profits are set aside for debenture redemption. No profits are moved to the Debenture Redemption Reserve in this scenario.
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संबंधित प्रश्न
What is meant by ‘Premium on Redemption of Debentures’?
What is meant by redemption of debentures?
How would you deal with ‘Premium on Redemption of Debentures’?
Differentiate between redemption of debentures out of capital and out of profits.
A company issued debentures of the face value of Rs 5,00,000 at a discount of 6% on April 01, 2012. These debentures are redeemable by annual drawings of Rs,1,00,000 made on March 31 each year. The directors decided to write off discount based on the debentures outstanding each year.
Calculate the amount of discount to be written-off each year. Give journal entries also.
A company issued 10% Debentures of the face value of Rs,1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of Rs 40,000 commencing from the end of third year.
How will you deal with discount on debentures?
Show the discount on debentures account in the company ledger for the period of duration of debentures. Assume accounts are closed on March 31 every year.
Own debentures are those debentures of the company which ______.
Which of the methods can be adopted to write off discount/loss on issue of debentures against the revenue profits?
Which of the following given statement is correct.
Statement 1 - "Bond and debentures are same in terms of contents and texture."
Statement 2 - "Bond and debentures are not same in terms of contents and texture."
What is the nature of Premium on Redemption of Debenture Account?
