Redemption of Debentures

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  • Redemption of Debentures means discharge of liability on account of debentures repayment made to the debentureholder.
    2018-02-12 16:25:30
  • Disclosure of Debenture Redemption Reserve is shown under sub-head "Reserve and Surplus".
    2018-02-12 16:25:16
  • Source of Redemption of Debentures are (i) Out of Capital, (ii) Out of Profit, (iii) By Converting them into Shares or New Debentures
    2018-02-12 16:24:53
  • Combining various conditions of issue and redemption of debentures, there may be the following possibilities (i) Issued at Par, (ii) Issued at Premium, (iii) Issued at Discount.
    2018-02-12 16:24:20
  • Debentures are redeemable at a premium, a provision has to be made right at the time of the shares issued by debiting the amount of Loss on Issue of Debentures Account.
    2018-02-12 16:23:55
  • Premium on Redemption of Debetures is a personal account, as it states the company liability to pay in future i.e. at the time of redemption.
    2018-02-12 16:23:32
  • Interest on Debentues, is calculated at a fixed rate on its face value and is usually payable half-yearly. Debenture interest is charged on profit.
    2018-02-12 16:23:15
  • As per Income Tax Act, a company paying interest on debentures is required to deduct income tax at the prescribed rate from gross amount of debenture interest before any payment is made to debentureholder.
    2018-02-12 16:23:00

  • 2018-02-12 16:22:45

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