Question : In the lump sum method after redemption of debentures  Amount of Debentures Redemption Reserve (DRR) is transferred to _________.

Option 1: General Reserve

Option 2: Capital Reserve

Option 3: General Reserve

Option 4: None of the above

Question : When Debentures are redeemed setting aside amount equivalent to nominal (face) value of outstanding debentures to Debentures Redemption Reserve (DRR). It is known as redemption -------

Option 1: Out of capital

Option 2: Out of profit

Option 3: Both 1 and 2

Option 4: None of the above

Question : When  Debentures are redeemed setting aside 10% of nominal (face) value of outstanding debentures to Debentures Redemption Reserve (DRR) known as redemption out of --------

Option 1: Out of capital

Option 2: Out of profit

Option 3: Both 1 and 2

Option 4: None of the above

Question : Debentures are redeemed without setting aside an amount to Debentures Redemption Reserve (DRR). It is called redemption ________.

Option 1: Out of capital

Option 2: Out of profit

Option 3: Both 1 and 2

Option 4: None of the above

Question : Puran  Store Ltd., an Unlisted Company, is to redeem 5000,8% Debentures of Rs. 100 each on 30th June 2020. It has a balance of Rs. 10,000 in Debentures Redemption Reserve. It decides to set aside the amount to Debentures Redemption Reserve on 31st March 2020 on which date it has

following Reserves and Surplus:   Rs.
Securities Premium Reserve 25,000
Capital reserve Rs 20,000
General Reserve 30,000; and
Surplus, i.e., Balance in Statement of Profit and Loss 30,000
Balance Rs. 40,000 can be set aside to Debentures Redemption Reserve from:

Option 1: Capital Reserve and General Reserve

Option 2:  Capital Reserve and Securities Premium Reserve

Option 3: General Reserve and Surplus, i.e., Balance in Statement of Profit and Loss

Option 4: Securities Premium Reserve and Surplus, i.e., Balance in Statement of Profit and Loss