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.

None of these

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Reserves

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Investments

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Profits

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Solution

The correct option is D
Profits

Where a company creates a Debenture Redemption Reserve for the redemption of such debentures, the amount shall be credited, out of its profits every year until such debentures are redeemed.

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Similar questions

The amount credited to the Debenture Redemption Reserve shall not be utilised by the company except for the purpose of redemption of debentures.

Alpha Ltd. has 10,000, $8 %$ Debentures of Rs 100 each due for redemption on 31st March 2018. Debenture Redemption Reserve has a balance of Rs 1,90,000 on 31st March,2017. It was decided to invest the required amount towards Debenture Redemption Investment. Investments were realised at $104 %$ less $0.5 %$ brokerage and debentures were redeemed. Record the necessary entries for the redemption of debentures.

Q. On 1st April, 2013 the following balances appeared in the books of Blue and Green Ltd.:
12%Debentures (Redeemable on 31st August, 2015) ₹ 20,00,000
Debentures Redemption Reserve ₹ 2,00,000.
The company met the requirements of Companies Act, 2013 regarding Debentures Redemption Reserve and Debentures Redemption Investments and redeemed the debentures.
Ignoring interest on investments, pass necessary journal entries for the above transactions in the books of company.

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. A company should at least have of the value of outstanding debentures in their debenture redemption reserve before redeeming the debentures.

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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.

The correct option is D Profits Where a company creates a Debenture Redemption Reserve for the redemption of such debentures, the amount shall be credited, out of its profits every year until such debentures are redeemed.

The correct option is D
Profits

Where a company creates a Debenture Redemption Reserve for the redemption of such debentures, the amount shall be credited, out of its profits every year until such debentures are redeemed.