Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
What are the various Sources of finance for redemption of debentures?
Options:
Redemption out of profits
Redemption out of capital
The proceeds from fresh issue of shares/debentures
All the above
Correct Answer:
All the above
Explanation:
Debentures can be redeemed from following sources:
1. Out of profits
2. out of capital
3. Proceeds from fresh issue of shares/debentures.