Redemption of Debentures
Commerce ⇒ Accountancy
Redemption of Debentures starts at 12 and continues till grade 12.
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See sample questions for grade 12
A company has a balance of ₹2,00,000 in Debenture Redemption Reserve and needs to redeem debentures worth ₹8,00,000. How much more should be transferred to DRR as per the 25% rule?
A company has a Sinking Fund of ₹1,00,000 and Sinking Fund Investments of ₹1,05,000. On sale, investments realize ₹1,10,000. What is the profit on sale of investments?
A company issued 10,000 debentures of ₹100 each, redeemable at a premium of 5%. Calculate the total amount payable on redemption.
A company issued 2,000 debentures of ₹100 each at a discount of 5%, redeemable at a premium of 10%. Calculate the total amount payable on redemption.
A company issued 5,000 debentures of ₹100 each at par, redeemable at a premium of 10%. Calculate the amount of premium payable on redemption.
A company purchases its own debentures of ₹1,00,000 at ₹98,000 for cancellation. What is the profit on cancellation?
A company redeems 1,000 debentures of ₹100 each at a premium of 10%. What is the total premium paid?
A company redeems debentures by drawing lots. What is the main advantage of this method?
Explain the accounting treatment for the conversion of debentures into shares at the time of redemption.
Explain the difference between redemption of debentures out of profits and out of capital.
Explain the impact of redemption of debentures on the company's capital structure.
Explain the journal entry for the redemption of debentures at par.
Explain the Sinking Fund method of redemption of debentures.
Explain the term 'purchase of own debentures in the open market for immediate cancellation'.
State the journal entry for the transfer of profits to Debenture Redemption Reserve.
What is meant by the redemption of debentures?
What is the effect of redemption of debentures on the company's cash balance?
What is the main objective of the Sinking Fund method in redemption of debentures?
What is the purpose of creating a Debenture Redemption Reserve?
When debentures are redeemed out of profits, which reserve is created?
