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Enumerate two methods of redemption of debentures. - Accounts

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Question

Enumerate two methods of redemption of debentures.

Very Short Answer
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Solution

  1. Lump-sum Payment Method: Debentures are redeemed by paying the entire amount in one payment on the maturity date.
  2. Instalment Method: Debentures are redeemed in instalments every year until the total amount is paid.
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2025-2026 (March) Specimen Paper - Analysis of Financial Statements
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