Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is meant by redemption of debenture

State the meaning of ‘Debentures issued as a collateral security’.

What is discount on issue of debentures?

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.

Can the company purchase its own debentures?

What is meant by conversion of debentures? Describe the method of such a conversion.

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

Explain the different terms for the issue of debentures with reference to their redemption.

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 is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.

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

Explain the process of preparing income statement and balance sheet.

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

Explain how common size statements are prepared giving an example.

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

Prepare the format of balance sheet and explain the various elements of balance sheet.

Prepare the format of statement of profit and loss and explain its items.

Explain the limitations of financial statements.

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