Under the provision, debenture redemption reserves will be funded by company profits every year until debentures are to be redeemed. If a company does not create a reserve within 12 months of issuing the debentures, they will be required to pay 2% interest in penalty to the debenture holders.
User Enrolled: 160
Period : 120 days
Instructor : Sharma Coaching Center
Sharma Coaching is running from last 30 years
Redemption of Debenture is a part of Accounting for companies. This unit covers 10 marks. Himanshu Sharma Sir is an excellent teacher in accounts. He has discussed here methods of Redemption, Sources of Redemption, Sources of Profit, Conversions, open markets, Lump Sums, Draw of lots, Creation of Debenture Redemption Reserve and so on..