0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Why is capital redemption reserve created?
No
Examine Debenture can be redeemed only out of capital?
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.
Is capital reserve a free reserve?
capital reserve is not a free reserve
Define capital reserve?
Capital reserve is the amount created to increase in market value of assets at the time of revaluation of assets.
What is working capital in a Bank?
Total of Share capital, reserves and other funds and deposits is working capital of the bank but less revaluation reserve.
Difference between Debenture Redemption Reserve and Capital redumption Reserve?
The Capital Redemption Reserve is a fund that secures a creditor. Debenture Redemption Reserve is for the purpose of security payments only.
Can revaluation reserve be use for bonus issue?
Yes it can use any of the capital reserves for the purpose, like Share Premium Account, Capital Redemption Reserve & Revaluation Reserve...
Why is capital redemption reserve created?
No
What is capital redemption reserves?
Capital Redemption Revere is an reserve created when a company buys it owns shares which reduces its share capital. This reserve is not distributable to shareholders and can be used to pay bonus shared issued.
How is capital redemption reserve created?
from undistributable profits to shareholders
When is a capital redemption reserve created?
Whenever there is redemption of shares and 1:There is no new issue of shares 2:the new issue of shares does not adequately cover the redemption It is a capital reserve,created out of a revenue reserve,and therefore cannot be used to pay off dividends. Hope this helped and best of luck for the future!
What are free reserves under companies act 1956?
investment allowance reserve, capital reserve received in cash, security premium received in cash,capital redemption reserve,
Define redemption of debentures out of capital?
When debentures are redeemed out of capital, no transfer is made to general reserve or debenture redemption reserve account. In this method it is assumed that the company has sufficient funds to redeem the debentures. So the profits are not utilised to replace the debentures.It affects adversely to the Working Capital of the company.
After redemption of debenture debenture reduption reserve where to transfer whether in PL Ac or in General reserve.?
After redemption of debentures, debenture redemption reserve is to be transferred to general reserve.
Can capital redemption reserve account be created out of securities premium account?
No. CRR should be created out of divisible profits only
Examine Debenture can be redeemed only out of capital?
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.
Is capital reserve a free reserve?
capital reserve is not a free reserve
