Home
Class 12
ACCOUNTS
Where is 'Debenture Redemption Reserve' ...

Where is 'Debenture Redemption Reserve' transferred after the redemption of all debentures?

A

Capital Reserve Account

B

General Reserve Account

C

Statement of Profit and Loss

D

Sinking Fund Account

Text Solution

Verified by Experts

The correct Answer is:
B
Promotional Banner

Topper's Solved these Questions

  • COMPANY ACCOUNTS - REDEMPTION OF DEBENTURES

    DK GOEL|Exercise Very Short Answer Questions|9 Videos
  • COMPANY ACCOUNTS - REDEMPTION OF DEBENTURES

    DK GOEL|Exercise Short Answer Questions|1 Videos
  • COMPANY ACCOUNTS - REDEMPTION OF DEBENTURES

    DK GOEL|Exercise Problem Solution|3 Videos
  • COMPANY ACCOUNTS - ISSUE OF SHARES

    DK GOEL|Exercise QUESTIONS BASED ON INCOMPLETE INFORMATION (Problem)|10 Videos
  • COMPARATIVE STATEMENTS

    DK GOEL|Exercise MULTIPLE CHOICE QUESTIONS|30 Videos

Similar Questions

Explore conceptually related problems

IFCl Ltd. (An All India Financial Institution) issued 10,00,000 9% Debentures of Rs. 50 each on 1st April, 2011 redeemable on 1st April, 2019. How much amount of Debentures Redemption Reserve is required before the redemption of debentures ? Also, pass Journal entries for issue and redemption of debentures.

(Redemption of Debentures in case of All India Financial Institutions). Export-Import Bank of India, an All India Financial Institution, has outstanding Rs. 50,00,000, 10% Debentures of Rs. 100 each issued in 2016, due for redemption on 31st March, 2019. State the amount of Debentures Redemption Reserve to be created before the redemption of debentures begins. Also, pass Journal entries for redemption of debentures.

(Redemption of Debentures in case of Banking Company). Bank of India Ltd. Has outstanding 1,00,000, 10% Debentures of Rs. 10 each issued in 2015 due for redemption 30th June, 2019. How much amount of Debentures Redemption Reserve should be created before the redemption of debentures begins and also how much amount should it invest in specified securities ? Pass Journal entries at the time of redemption of debentures.

Venus Ltd. had 9,000, 9% Debentures of Rs. 100 each due for redemption. These debentures are to be redeemed in 3 equal instalments (starting form 31st March, 2015) at a premium of 10% . The company had a balance of Rs. 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.

Nirbhai Chemicals Ltd. Issued RS. 10,00,000 , 6% Debentures of Rs. 50 each at a premium of 8% on 30th june, 2018 redeemable on 30th June, 2019. The issue was fully subcribed. Pass Journal entries for issue and redemption of debentures. How much amount should be transferred. to Debentures Redemption Reserve before redemption of debentures ? Also, state how much amount should be invested in specified securities ?