Explain the different types of debenture | Class 12 Accountancy - Company Accounts and Analysis of Financial Statements Chapter Issue and Redemption of Debentures, Issue and Redemption of Debentures NCERT Solutions

How would you deal with ‘Premium on Redemption of Debentures?

What is meant by ‘Premium on Redemption of Debentures’?

Can the company purchase its own debentures?

What does a Bearer Debenture mean?

What is a ‘Convertible Debenture’?

What is meant by redemption of debentures by ‘Purchase in the Open Market’?

What is meant by ‘Mortgaged Debentures’?

What is ‘Capital Reserve’?

Under which head is the ‘Debenture Redemption Reserve’ shown in the balance sheet?

What is meant by ‘Redemption out of Capital?

How will you disclose the following items in the Balance Sheet of a company;
(i) Loose tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures redemption reserve
(iv) Mastheads and publishing titles                                                                        (v) 10% debentures
(vi) Proposed dividend
(vii) Share forfeited account
(viii) Capital redemtion reserve
(ix) Mining rights
(x) Work-in-progress

The current ratio provides a better measure of overall liquidity only when a
firm’s inventory cannot easily be converted into cash. If inventory is liquid, the
quick ratio is a preferred measure of overall liquidity. Explain.

Explain the usefulness of trend percentages in interpretation of financial performance of a company.

The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

What do you understand by analysis and interpretation of financial statements? Discuss its importance.

What are liquidity ratios? Discuss the importance of current and liquid ratio.

State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors

Explain how common size statements are prepared giving an example.

How will you disclose the following items in the Balance Sheet of a company;
(i) Loose tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures redemption reserve
(iv) Mastheads and publishing titles                                                                        (v) 10% debentures
(vi) Proposed dividend
(vii) Share forfeited account
(viii) Capital redemtion reserve
(ix) Mining rights
(x) Work-in-progress

State the meaning of Analysis and Interpretation.

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

The average age of inventory is viewed as the average length of time inventory is held by the firm or as the average number of days’ sales in inventory. Why?

Explain the usefulness of trend percentages in interpretation of financial performance of a company.

State the meaning of financial statement analysis?

What do you mean by Common Size Statements?

‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.

Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?

What do you understand by analysis and interpretation of financial statements? Discuss its importance.