Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | How debentures are different from shares

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.

Describe the steps for creating Sinking Fund for redemption of debentures.

What is ‘Capital Reserve’?

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

Explain the different types of debentures?

Can the company purchase its own 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?

Explain the limitations of financial statements.

State the meaning of Analysis and Interpretation.

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

What are Comparative Financial Statements?

List the techniques of Financial Statement Analysis.

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

How would you study the Solvency position of the firm?

What are important profitability ratios? How are these worked out?

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.

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?