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
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
Debentures Redemption Reserve is set aside by a company out of the amount available for payment of dividends because if debentures are redeemed out of profit and at the end of the year General Reserve can be transferred to Debentures Redemption Reserve. Hence, the correct option is 3.
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 : ----------- is a fund set up to use for distribution as prizes, say for achievements or contributions to the welfare of society.
Question : Which of the following statement is correct? Statement 1: Under offer for sale the company issues a prospectus and invite the general public to purchase shares or debentures. Statement 2: Under private placement the company sells security to the institutional
Question : Right shares are not offered to the existing equity shareholders if :
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