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
Correct Answer: Out of profit
Solution : Answer = Out of profit
If the debentures are redeemed out of the profit the amount equivalent to the nominal (face) value of outstanding debentures to the Debentures Redemption Reserve (DRR). Hence, the correct option is 2.
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 --------
Question : Debentures are redeemed without setting aside an amount to Debentures Redemption Reserve (DRR). It is called redemption ________.
Question : Choose which of the following statements is true?
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------------
Question : After redeeming the debentures, in part or total outstanding debentures, amount of DRR relating to debentures redeemed is transferred to-------
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