MyQuestionIcon

2625

You visited us 2625 times! Enjoying our articles? Unlock Full Access!

Redemption of Debentures

A company sho...

Question

A company should at least have how much % of the value of outstanding debentures in their debenture redemption reserve before redeeming the debentures?

A

15%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

25%

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

30%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

50%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B
25%

A company should at least have 25% of the value of outstanding debentures in their debenture redemption reserve before redeeming the debentures.

Suggest Corrections

thumbs-up

0

Similar questions

Q. A company should at least have of the value of outstanding debentures in their debenture redemption reserve before redeeming the debentures.

Q. Dow Ltd. issued ₹ 2,00,000; 8% Debentures of ₹ 10 each at a premium of 8% on 30th June, 2016 redeemable on 31st March, 2018. How much amount should be transferred to Debentures Redemption Reserve before redemption of debentures?

Q. Nirbhai Chemicals Ltd. issued ₹ 10,00,000; 6% Debentures of ₹ 50 each at a premium of 8% on 30th June, 2018 redeemable on 30th June, 2019. The issue was fully subscribed. Pass Journal entries for issue and redemption of debentures. How much amount should be transferred to Debentures Redemption Reserve before redemption of debentures? Also, state how much amount should be invested in specified securities?

Q. IFCI Ltd.( An All India Financial Institution) issued 10,00,000; 9% Debentures of SRCC Ltd. ₹50 each on 1st April, 2011 redeemable on 1st April, 2017. How much amount of Debentures Redemption Reserve is required before the redemption of debentures? Also,pass journal entries for issue and redemption of debentures.

Q. On 1st April, 2014, following were the balances of Blue Bird Ltd.:
10% Debentures (redeemable on 30th September, 2017) ₹ 15,00,000
Debentures Redemption Reserve ₹ 2,00,000
The company met the requirements of the Companies Act, 2013 regarding Debentures Redemption Reserve and Investment and redeemed the debentures.
Pass necessary journal entries for the above transactions in the books of the company.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Accounting Treatment-II

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Redemption of Debentures

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon