What is meant by ‘Premium on Redemption of Debentures’?
Premium on redemption of debentures is a personal account and it is a liability of the company which is payable on redemption.
When the debentures are redeemed at a price more than its face value or the par value, then it is said that the debentures are redeemed at premium. The difference between the redeemed price and the par value is regarded as a capital loss and this loss is written off till the redemption of the debentures. The Premium on Redemption of Debenture is shown on the Liabilities side of the Balance Sheet under the head of Current Liabilities and Provisions until debentures are redeemed.
What is discount on issue of debentures?
State the meaning of ‘Debentures issued as a collateral security’.
Explain the guidelines of SEBI for creating Debenture Redemption Reserve.
What is ‘Capital Reserve’?
Describe the steps for creating Sinking Fund for redemption of debentures.
Under which head is the ‘Debenture Redemption Reserve’ shown in the balance sheet?
Can the company purchase its own debentures?
Explain the different types of debentures?
What is meant by conversion of debentures? Describe the method of such a conversion.
What do you mean by Ratio Analysis?
List the techniques of Financial Statement Analysis.
State the meaning of financial statement analysis?
What are various types of ratios?
Distinguish between Vertical and Horizontal Analysis of financial data.
What are limitations of financial statement analysis?
What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover
State the meaning of Analysis and Interpretation.
List any three objectives of analysing financial statements?
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 are important profitability ratios? How are these worked out?
Prepare the format of statement of profit and loss and explain its items.
What are Comparative Financial Statements?
Prepare the format of balance sheet and explain the various elements of balance sheet.
How would you study the Solvency position of the firm?
State the meaning of Analysis and Interpretation.
‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.
Explain the usefulness of trend percentages in interpretation of financial performance of a company.
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.