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 : After redeeming the debentures, in part or total outstanding debentures, amount of DRR relating to debentures redeemed is transferred to-------

Option 1: Capital Reserve

Option 2: General Reserve 

Option 3: Capital Redemption Reserve

Option 4: Securities Premium Reserve

Question : When an amount that is at least 10 per cent of the nominal (face) value of the outstanding debentures is transferred to Debentures Redemption Reserve Account; before the redemption of debentures, it is termed as------------

Option 1: Out of capital

Option 2: Out of profit

Option 3: Both 1 and 2

Option 4: None of the above

Question : If debentures of Rs. 20,000 are issued at par and are redeemable at a premium of 10%, the premium payable is debited to

Option 1: Premium on Redemption of Debentures Account

Option 2: Debentures Suspense Account

Option 3: Loss on Issue of Debentures Account

Option 4: None of the above

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.