Practice Journal Entries for Redemption - 2.4.4 | Chapter 2: Joint Stock Company Accounts | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the purpose of Debenture Redemption Reserve (DRR)?

πŸ’‘ Hint: Think about why companies need to prepare for repayment.

Question 2

Easy

Define what a debenture is.

πŸ’‘ Hint: Consider debentures as similar to bonds.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does DRR stand for?

  • Debenture Repayment Reserve
  • Debenture Redemption Reserve
  • Debt Reserve for Redemption

πŸ’‘ Hint: Think about the reserve's function.

Question 2

True or False: The premium is an additional charge incurred when redeeming debentures.

  • True
  • False

πŸ’‘ Hint: What happens when you pay more than the face value?

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company redeems β‚Ή2,00,000 of 10% debentures at a premium of 5%. Prepare the journal entries for the redemption.

πŸ’‘ Hint: Identify total amounts and whether to add the premium in your entries.

Question 2

Discuss the potential impact on the company’s financial health if DRR is not maintained before redemption.

πŸ’‘ Hint: Consider what financial stability means for businesses.

Challenge and get performance evaluation