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 : 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 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 : 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