The Issue and Redemption of Debentures category covers the key concepts behind issuing debentures, the various redemption methods, and related accounting and financial implications. It helps students understand how companies raise capital through debentures and manage repayment.
(A), (B) and (D) only debenture correct; interest charge sinking fund redemption per AS.
Ref: NCERT Accountancy Class XII Chapter 7 Debentures explains issue redemption interest sinking fund accounting treatment Companies Act provisions clearly.
Debentures Suspense Account debenture correct; interest charge sinking fund redemption per AS.
Ref: NCERT Accountancy Class XII Chapter 7 Debentures explains issue redemption interest sinking fund accounting treatment Companies Act provisions clearly.
Equity shares may be exchanged at debenture correct; interest charge sinking fund redemption per AS.
Ref: NCERT Accountancy Class XII Chapter 7 Debentures explains issue redemption interest sinking fund accounting treatment Companies Act provisions clearly.
Miscellaneous expenditure debenture correct; interest charge sinking fund redemption per AS.
Ref: NCERT Accountancy Class XII Chapter 7 Debentures explains issue redemption interest sinking fund accounting treatment Companies Act provisions clearly.
After redemption, sinking fund balance transferred to General Reserve.
Ref: NCERT Accountancy Class XII Chapter 7 Debentures explains issue redemption interest sinking fund accounting treatment Companies Act provisions clearly.
Debenture interest is charge against profit; must be paid irrespective profit.
Ref: NCERT Accountancy Class XII Chapter 7 Debentures explains issue redemption interest sinking fund accounting treatment Companies Act provisions clearly.
