Skip to main content
Super TutorResources
Chapter 9 of 10
QuestionsNotesFlashcardsSummaryFormulasQuizConceptsSyllabusPlan
Chapter Summary

Joint Stock Company Accounts : Redemption of Debenture

ICSE · Class 12 · Accountancy

Summary of Joint Stock Company Accounts : Redemption of Debenture for ICSE Class 12 Accountancy. Key concepts, important points, and chapter overview.

5 concepts

Interactive on Super Tutor

Studying Joint Stock Company Accounts : Redemption of Debenture? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for chapter summary and more.

Try Super Tutor — Free

1,000+ Class 12 students started this chapter today

Overview

Redemption of debentures is a critical process in corporate financial management where a joint stock company repays borrowed funds (debentures) to debentureholders. This chapter explores the meaning, methods, accounting treatment, and practical implications of debenture redemption under the Indian C

Key Concepts

Redemption refers to the repayment

Redemption refers to the repayment of debenture amount by a company to its debentureholders, thereby discharging the company's liability. Debentures a

There are three primary methods

There are three primary methods: (1) Redemption in Lump Sum - entire debenture amount is repaid at the end of fixed period; (2) Redemption in Annual I

As per Section 71(4) of Companies

As per Section 71(4) of Companies Act, 2013, companies must create DRR equivalent to at least 25% of debenture amount issued before redemption commenc

As per Rule 18(7)(c) of Companies

As per Rule 18(7)(c) of Companies (Share Capital and Debentures) Rules 2014, companies must invest or deposit minimum 15% of face value of debentures

At issue

At issue: Bank/Cash is debited for amount received; Debenture Application and Allotment Account is credited. Adjustments are made for discounts (debit

Learning Objectives

  • Understand the meaning and significance of debenture redemption
  • Learn the different methods of redeeming debentures and their applications
  • Master the journal entries required for issue and redemption of debentures at par, premium, and discount
  • Comprehend the role and creation of Debenture Redemption Reserve as per Section 71 of Companies Act, 2013
  • Apply the 15% investment rule for debenture redemption as per Company Rules 2014

Frequently Asked Questions

What are the important topics in Joint Stock Company Accounts : Redemption of Debenture for ICSE Class 12 Accountancy?
Joint Stock Company Accounts : Redemption of Debenture covers several key topics that are frequently asked in ICSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Joint Stock Company Accounts : Redemption of Debenture — ICSE Class 12 Accountancy?
Start by understanding all key concepts. Practise previous year questions from this chapter. Revise formulas and definitions regularly. Use flashcards for quick revision before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Joint Stock Company Accounts : Redemption of Debenture

All 10 chapters — ICSE Class 12 Accountancy Chapter Summary

For serious students

Get the full Joint Stock Company Accounts : Redemption of Debenture chapter — for free.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for ICSE Class 12 Accountancy.

Try Super Tutor Free
Try the full chapter — Free