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

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?

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?

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?

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

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 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.

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.

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

List any three objectives of analysing financial statements?

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