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Question

What is meant by bad debts reserved ?

What is meant by debentures ?

What is meant by Aprrenticeship Premium?

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Solution

Bad Debts Reserve is created out of profits as an allowance for bad and doubtful debts.It is the amount set aside as reserve for bad debts.

Debenture is a written instrument which is issued in the form of a certificate under the common seal of a company containing a contract for the repayment of principal sum after a fixed period of time and interest is paid regularly at fixed interval of time.It is a debt instrument for a company as it acknowledge debt for the company.

Apprenticeship Premium is the amount charged from the persons whom the training is provided by the business. This is Income for the business and can be charged in advance for two or three years.


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