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What is Meant by Redemption of Debentures by Conversion? - Accountancy

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प्रश्न

Short Answer Question

What is meant by redemption of debentures by conversion?

संख्यात्मक
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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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पाठ 2: Issue and Redemption of Debentures - Questions for Practice [पृष्ठ १३५]

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एनसीईआरटी Accountancy - Company Accounts and Analysis of Financial Statements [English] Class 12
पाठ 2 Issue and Redemption of Debentures
Questions for Practice | Q 15 | पृष्ठ १३५

संबंधित प्रश्‍न

What is meant by redemption of debentures?


What is meant by redemption of debentures out of Capital?


Short Answer Question

Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet?


Long Answer Question

Explain the guidelines of SEBI for creating Debenture Redemption Reserve.


Long Answer Question

Describe the steps for creating Sinking Fund for redemption of debentures.


Long Answer Question

What is meant by conversion of debentures? Describe the method of such a conversion.


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.


Convertible debentures cannot be issued at a discount if ______.


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 column indicated in the statement given below is to be debited?

"Purchase of own debentures by the company for cancellation" ·


Which of the following methods are there for redemption of debentures?


Shashi Ltd. decided to redeem its 8,000, 11% Debentures of ₹ 100 each at a premium of 10%. The minimum amount transferred to Debenture Redemption Reserve will be: (assume that the company is not listed)


If debentures purchased in the open market are not immediately cancelled, they are treated as:


Which of the following is not true about Debenture Redemption Reserve (DRR)?


Premium on Redemption of Debentures Account is a ______.


Premium on redemption of debentures is generally provided at the time of ______.


What is the nature of Premium on Redemption of Debenture Account?


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