Question : Choose which of the following statements is true?
Option 1: Surplus, i.e., Balance in Statement of Profit and Loss cannot be transferred to Debentures Redemption Reserve.
Option 2: At least 10% of the redeemable value of debentures should be set aside to Debentures Redemption Reserve before the redemption of debentures.
Option 3: Debentures can be redeemed out of capital except by Unlisted companies that are not NBFCs or HFCs.
Option 4: Unlisted NBFCs and HFCs cannot redeem debentures out of capital alone because they haveto transfer amount to Debentures Redemption Reserve.
Correct Answer: Debentures can be redeemed out of capital except by Unlisted companies that are not NBFCs or HFCs.
Solution : Answer = Debentures can be redeemed out of capital except by Unlisted companies that are not NBFCs or HFCs.
Surplus, i.e., Balance in the Statement of Profit and Loss, cannot be transferred to Debentures.
Redemption Reserve. At least 10% of the redeemable value of debentures should be set aside for Debentures Redemption Reserve before the redemption of debentures. Debentures can be redeemed out of capital except by Unlisted companies that are not NBFCs or HFCs, and Unlisted NBFCs and HFCs cannot redeem debentures out of capital alone because they have to transfer the amount to Debentures Redemption Reserve. Hence, the correct option is 3.
Question : Choose which of the following statements is true.
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
Question : Choose which of the following statements is not correct.
Question : After redeeming the debentures, in part or total outstanding debentures, amount of DRR relating to debentures redeemed is transferred to-------
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 --------
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