debit redemption of debentures account
credit cash / bank
when debentures are issued at discount, it is prudent to write off the discount
no because the discount allowed and discount received are totally diffrent and has no link with each other where as if credit note is not issued than it cant received even
debit accounts payablecredit bank
Debit supplies expensesCredit supplies inventory
Fully paid shares means that the amount of which shares are fully paid by the investors while shares issued at discount means, share are issued at discounted price from actual face value of asset.
when debentures are issued at discount, it is prudent to write off the discount
when debentures are issued at discount, it is prudent to write off the discount
No Debentures can not be redeemed out of capital only. Gov of India and SEBI has indirectly placed restrictions on redemption of debentures. Now it is compulsory to create Debenture Redemption Reserve at-least 50% of the debentures issued.
recently which industry/company had issued its debentures
recently which industry/company had issued its debentures
A company can buy its own debenture in the open market, if it is authorised by its AOA. the debentures so purchased can be used either for immediate cancellation or redemption of debenture or for investment. the debenture so purchase for investment can be subsequently either be issued to fullfill additional requirements of cash or can be cancelled if the company so desires. debentures when purchases for investment are popularly known as 'OWN DEBENTURES.'
debit share redemption accountcredit cash / bankcredit profit on share redemption
Most companies retire debentures by issuing another set of debentures, hence, most companies don't park funds for retiring debentures by creating any fund. The bond market will surely get affected negatively by such a move of the ministry of corporate affairs. Section 117C of the Companies Act, 1956, requires every company issuing debentures to create a debenture redemption reserve (DRR) for the redemption of such debentures and transfer an 'adequate' amount from its profits every year to such DRR until the issued debentures are redeemed. Hence, every issue of redeemable debentures requires creation of a DRR. The said Section, however, does not provide the meaning of the word 'adequate'. In the year 2002, the ministry of corporate affairs (MCA) issued a circular clarifying the meaning of 'adequate' and provided the percentage which is mandatorily required to be transferred to DRR by certain class of companies. However, to develop the bonds market, MCA issued another clarification circular on 11 February 2013 (Circular 2013)
the companies that have issued debentures in recent years.give suggestions to make debentures more popular?
Indian Companies Act of 1956 added during an amendment in the year 2000. It states Indian company that issues debentures must offer debenture redemption service to protect investors against the possibility of company default. If a company does not create a reserve within 12 months of issuing the debentures, they will be required to pay 2 percent interest in penalty to the debenture holders. Only debentures that were issued after the amendment in 2000 are subject to the debenture redemption service.
Recently Engro Pakistan sold debentures to general public!
the companies that have issued debentures in recent years.give suggestions to make debentures more popular?