Debenture Redemption Reserve ensures that the _____________ amount of the debenture holders is safeguarded.

Interest

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Principal loan

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Both principal loan and interest

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None of these

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Solution

The correct option is B
Principal loan

Debenture Redemption Reserve ensures that the principal loan amount of the debenture holders is safeguarded.

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Similar questions

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. Select most appropriate alternative from those given below :

The interest on debentures is transferred to __________.
a) Debentures A/c
b) Profit of Loss A/c
c) Balance Sheet
d) Debenture holders A/c

Q. Whether the following items will be included in National Income? Give reasons for your answer.
(i) Purchase of a second hand machine from a domestic firm.
(ii) Interest received on loans taken by government.
(iii) Leave travel allowance paid to employees by a company.
(iv) Direct purchases made by resident households.
(v) Interest received on debentures by debenture-holders.

Q. Which of the following statement is true?
a. A debenture holder is an owner of the company.
b. A debenture holder can get his money back only on the liquidation of the company.
c. A debenture issued at a discount can be redeemed at a premium.
d. A debenture holder receives interest only in the event of profit.

Q. NPA is a loan or an advance where interest and/or installment of principal remain overdue for a period of more than ______ days in respect of a term loan.

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Debenture Redemption Reserve ensures that the _____________ amount of the debenture holders is safeguarded.

The correct option is B Principal loan Debenture Redemption Reserve ensures that the principal loan amount of the debenture holders is safeguarded.

The correct option is B
Principal loan

Debenture Redemption Reserve ensures that the principal loan amount of the debenture holders is safeguarded.