Question
Accountancy Question on Accounting for Share and Debenture Capital
Arrange the following in the correct sequence in the context of debenture:
(A) Payment to debenture-holders
(B) Creation of DRR
(C) Issue of debentures
(D) Redemption becomes due.
A
(A), (B), (C), (D)
B
(A), (C), (B), (D)
C
(B), (A), (D), (C)
D
(C), (B), (D), (A)
Answer
(C), (B), (D), (A)
Explanation
Solution
The correct sequence is: (C) Issue of debentures → (B) Creation of Debenture Redemption Reserve (DRR) → (D) Redemption becomes due → (A) Payment to debenture holders.
Hence, the correct answer is Option 4.