When debentures are redeemed out of profits, an equal amount is transferred to ___

None of these

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Debenture redemption reserve

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Debentureholders a/c

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Debentures a/c

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Solution

The correct option is B
Debenture redemption reserve

When debentures are redeemed out of profits, an equal amount is transferred to Debenture Redemption Reserve.

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Similar questions

Q. When debentures are redeemed out of profits, an equal amount is transferred to _______.

What entries for the redemption of debentures will be done when : (a) debentures are redeemed by annual drawings out of profits; (b) debentures are redeemed by drawing a lot out of capital; and (c) debentures are redeemed by purchasing them in the open market when sinking fund for the redemption of debentures is not maintained − (i) when out of profit, and (ii) when out of capital?

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. Venus Ltd. had 9,000, 9% Debentures of ₹ 100 each due for redemption . These debentures are to be redeemed in 3 equal installments (starting from 31st March,2015) at a premium of 10%. The company had a balance of ₹ 25,000 in the Debentures Redemption Reserve .
Pass necessary entries for redemption of debentures assuming that company transfer the balance of DRR to General Reserve after redeeming all 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?

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When debentures are redeemed out of profits, an equal amount is transferred to ___

The correct option is B Debenture redemption reserve When debentures are redeemed out of profits, an equal amount is transferred to Debenture Redemption Reserve.

The correct option is B
Debenture redemption reserve

When debentures are redeemed out of profits, an equal amount is transferred to Debenture Redemption Reserve.