Home
Class 12
ACCOUNTS
What is meant by Redemption of Debenture...

What is meant by Redemption of Debentures?

Text Solution

Verified by Experts

When no profits are set aside for redemption of debentures it is called redemption out of Capital. In such a case no profit are transferred to Debenture Redemption Reserve.
Promotional Banner

Topper's Solved these Questions

  • COMPANY ACCOUNTS - REDEMPTION OF DEBENTURES

    DK GOEL|Exercise Short Answer Questions|1 Videos

  • COMPANY ACCOUNTS - REDEMPTION OF DEBENTURES

    DK GOEL|Exercise Practical Questions|19 Videos

  • COMPANY ACCOUNTS - REDEMPTION OF DEBENTURES

    DK GOEL|Exercise MCQ|6 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

(Transfer of DRR to General Reserve on redemption of all the debentures). On 1st April 2017, Base Ltd. Issued Rs. 40,00,000, 10% Debentures of Rs. 100 each at a premium of 5% and redeemable at a premium of 10% in equal annual drawing by draw of lots in 2 years starting from 31 st March, 2018. It also decided to transfer amount of DRR to General Reserve after redemption of all the debentures, at the end of that Financial Year. Pass the necessary Journal entries during the years of Issue and Redemption of Debentures. Ignore interest paid on Debentures and interest received in Debentures Redemption Investment.

On 31 st March, 2003, G Ltd. Had Rs. 8,00,000 9% Debentures due for redemption. The company had a balance of Rs. 1,40,000 in its Debentures Redemption Reserve. Pass necessary Journal entries entries for redemption of debentures.

On 1st April, 2015, Mathew Ltd. Issued 10,000, 9% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 5%. These debentures were redeemable as follows: {:("On31st March, 2016",,,,"2,000 Debentures,"),("On31st March, 2017",,,,"3,000 Debentures,"),("On31st March, 2018",,,,"3,000 Debentures,"):} prepare the Loss Issue of Debentures Account, Debentures Account and Premium on Redemption of Debentures Account for the three years.