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प्रश्न
Short Answer Question
What is meant by redemption of debentures by conversion?
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उत्तर
When a debenture holder can convert his/her debentures into shares or new debentures after the expiry of a specified period of time, then it is known as redemption of debentures by conversion. As the company do not need to pay any funds for the redemption, so there is no need to maintain the Debenture Redemption Reserve (DRR). The new shares or debentures may be issued at par, premium or at discount.
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संबंधित प्रश्न
Short Answer Question
What is meant by ‘Premium on Redemption of Debentures’?
Short Answer Question
How would you deal with ‘Premium on Redemption of Debentures’?
What is meant by redemption of debentures out of Capital?
Short Answer Question
What is meant by redemption of debentures by ‘Purchase in the Open Market’?
Short Answer Question
Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet?
Long Answer Question
Differentiate between redemption of debentures out of capital and out of profits.
Long Answer Question
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X.Ltd. purchased a Machinery from Y for an agreed purchase consideration of Rs 4,40,000 to be satisfied by the issue of 12% debentures of Rs 100 each at a premium of Rs 10 per debenture. Journalise the transactions.
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Calculate the amount of discount to be written-off each year. Give journal entries also.
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Pass the necessary journal entries for the redemption of debentures.
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Consider the following statements.
Statement 1 - "No DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures".
Statement 2 - DRR is required for debentures issued by All India Financial Institutions, regulated by RBI and Banking Companies for both public as well as privately placed debentures"
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According to SEBI guidelines, what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redemption of debentures, in the case of convertible debentures?
Debentures can be redeemed out of:
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Premium on Redemption of Debentures Account is a ______ Account.
Sources of finance for the redemption of debentures are ______.
What is the nature of Premium on Redemption of Debenture Account?
