wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

What is meant by redemption of debentures by conversion?

Open in App
Solution

When a debenture holder can convert his/her debentures into shares or new debentures after the expiry of a specified period of time, then it is known as redemption of debentures by conversion. As the company do not need to pay any funds for the redemption, so there is no need to maintain the Debenture Redemption Reserve (DRR). The new shares or debentures may be issued at par, premium or at discount.


flag
Suggest Corrections
thumbs-up
12
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Accounting Treatment-II
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon