Which of the following is a method of redemption of debentures?

Draw of lots

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Conversion

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Open Market Purchase

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All of the Above

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Solution

The correct option is A All of the Above
The Company can adopt any one of the following method for redemption of its debentures:
1) Redemption of debenture in lump sum after a stipulated time
2) Redemption by annual drawings out of capital or out of profits
3) Redemption of debenture from open market
4) Redemption of debenture by conversion in to shares or new debenture

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Similar questions

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?

Q. Which of the following items are application of funds?
(1) Material purchased for manufacturing activities.
(2) Loan from financial company.
(3) Redemption of debentures.
(4) Payment of dividend.

Q. Which of the following is not a method of segmenting a market?

Q. Which of the following is not a source of redemption of preference shares?

Q. Debt to Equity Ratio of a company is 0.5:1. Which of the following suggestions would increase, decrease or not change it:

(i) Issue of Equity Shares:	(ii) Cash received from debtors:
(iii) Redemption of debentures;	(iv) Purchased goods on Credit?

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