When the company redeem its debentures at the end of the tenure by single payment is called payment in .

lump sum

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Solution

The correct option is A lump sum
Redemption in lump sum implies that debentures are repaid to debenture holders in lump-sum (at once) after a specified period. The company pays the amount to the debenture holders in a lump sum as per the terms of the issue of such debentures.

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Similar questions

When the company redeem it's debentures at the end of the tenure by single payment is called ______

Q. Instead of paying at the end of the tenure, a portion of debentures will be redeemed at frequent intervals, this is called redemption in .

Q. A limited company issued ₹ 10,00,000;9% Debentures at a discount of 6% on 1st April, 2014. These debentures are to be redeemed equally, in 5 annual installments starting from 31st March, 2015. Discount on Issue of Debentures is written off during the tenure of debentures.
Pass the journal entries for issue of debentures and writing off the discount.

Beeta Ltd, issued 5,000, $9 %$ debentures of Rs 500 each. Pass the necessary journal entries for the issue of Debentures in the books of the company in the following cases:

(i) When debentures are issued at $10 %$ premium and redeemable at par.

(ii) When debentures are issued at par and redeemable at $10 %$ premium.

(iii) When debentures are issued at $5 %$ premium and redeemable at $10 %$ premium.

(iv) When debentures are issued at $25 %$ to the vendors for machinery purchased for Rs 6,25,000.

Q. Debentures ______________ forfeited for non-payment of call moneys.

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When the company redeem its debentures at the end of the tenure by single payment is called payment in .

The correct option is A lump sumRedemption in lump sum implies that debentures are repaid to debenture holders in lump-sum (at once) after a specified period. The company pays the amount to the debenture holders in a lump sum as per the terms of the issue of such debentures.

The correct option is A lump sum
Redemption in lump sum implies that debentures are repaid to debenture holders in lump-sum (at once) after a specified period. The company pays the amount to the debenture holders in a lump sum as per the terms of the issue of such debentures.