As per the provisions of the Companies Act, 2013, the company must set aside a portion of profits every year and transfer it to___for redemption of debentures until the debentures

Any Reserve

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Redemption of debentures reserve

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Debenture redemption reserve

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None of these

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Solution

The correct option is C
Debenture redemption reserve

As per the provisions of the Companies Act, 2013, the company must set aside a portion of profits every year and transfer it to debenture redemption reserve for redemption of debentures

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Similar questions

Q. State the provisions of the Companies Act,

2013

for the creation of 'Debenture Redemption Reserve'.

Where a company creates a Debenture Redemption Reserve for the redemption of such debentures, the amount shall be credited, out of its ___every year until such debentures are redeemed.

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.

Q. Rich sugar Ltd. issued ₹ 20 Lakh,8% Debentures divided into debentures of ₹ 100 each on 1st April, 2013, redeemable in four equal annual installments starting from 31st March,2016. The company decided to transfer to Debentures Redemption Reserve ₹ 2,50,000 each year on 31st March,2014 and 2015.
The company invested ₹ 3,00,000 in Government securities as required by the Companies Act, 2013.
Pass necessary journal entries for the above transactions.

On 1st April, 2016, 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.

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As per the provisions of the Companies Act, 2013, the company must set aside a portion of profits every year and transfer it to___for redemption of debentures until the debentures

The correct option is C Debenture redemption reserve As per the provisions of the Companies Act, 2013, the company must set aside a portion of profits every year and transfer it to debenture redemption reserve for redemption of debentures

The correct option is C
Debenture redemption reserve

As per the provisions of the Companies Act, 2013, the company must set aside a portion of profits every year and transfer it to debenture redemption reserve for redemption of debentures