Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
A ltd decides to redeem 1000 , 10% debentures at the rate of Rs 1000 on 30 June 2022. The company shall invest specified amount in specified securities on or before which date?
Options:
30-Apr-21
30-Jun-21
30-Apr-22
31-Mar-21
Correct Answer:
30-Apr-22
Explanation:
Every company which is required to create Debenture Redemption Reserve, shall on or before the 30th day of April in each year, invest or deposit, as the case may be, a sum which shall not be less than fifteen per cent, of the amount of its debentures maturing during the year ending on the 31st day of March of the next year,