Question : Before the redemption of debentures.Amount is set aside to ---------------------

 

Option 1: Debenture Redemption Reserve Account

Option 2: Sinking Fund Account

Option 3: Both 1 and 2

Option 4: None of the above

Question : Choose which of the following statements is true?

Option 1: Debentures Redemption Reserve is set aside by a company out of amount available for payment of dividend.

Option 2: General Reserve can be transferred to Debentures Redemption Reserve.

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 : When all of the bonds are redeemed, the remaining funds in the bond sinking fund account can be transferred to:

Option 1: Bond A/c

Option 2: Sinking Fund Investment A/c

Option 3: Capital Redemption Reserve A/c

Option 4: General Reserve A/c

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 : Choose which of the following statements is true.

Option 1: Debentures Redemption Reserve is set aside by all the companies except All India Financial Institutions regulated by RBI and Banking Companies.

Option 2: Amount is set aside to Debentures Redemption Reserve by Unlisted Companies which are not Non-Banking Finance Companies (NBFCs) or Housing Finance Companies (HFCs).

Option 3: Amount is set aside to Debentures Redemption Reserve by all Unlisted Companies.

Option 4: Debentures Redemption Investment is made by the companies required to set aside amount to Debentures Redemption Reserve.