Premium on redemption of debenture
WebWhen 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 ... WebMay 17, 2024 · Debenture Redemption Reserve: A debenture redemption reserve is a provision that was added to the Indian Companies Act of 1956 during an amendment in …
Premium on redemption of debenture
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WebFeb 20, 2024 · The redemption value of the debentures is equal to the face value of the debentures. At a premium: The redemption value of the debentures is higher than the face value of the debentures. For example, if the face value of the debentures is Rs. 100, the redemption value can be Rs. 110 or 120 per debenture as agreed at the time of issue of … WebPremium on redemption of debentures is shown under liabilities side of the Balance Sheet, so, it is a personal account. This premium is payable by the company on redemption of …
WebOn Jan. 1, 2005, Kapil Agro Limited issued 2,000 11% Debentures of Rs. 100 each at par, redeemable at 5% premium. Expenses on issue amounted to Rs. 2,000. Interest is payable on debentures annually. It was decided to write off expenses on issue of debentures in 2005. The debentures are redeemed on 31-12-2011.
WebTo Premium on Redemption of Debentures A/c To Securities Premium A/c (Debenture application money transferred to debentures account) 1,05,000 5,000 1,00,000 5,000 5,000: Interest on debentures Example 2: A Ltd. issued 5000 10% debentures of 100 each at the discount of 10% redeemable at a premium of 10%. WebApr 5, 2024 · Note: When debentures are issued at a discount and redeemable at a premium, then the loss is the sum of the discount on issue + the amount of premium payable on …
WebWhen 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 …
WebJan 25, 2010 · The assessee submits that the premium on redemption of debentures is liable for tax under ‘capital gains’.3. Without prejudice to the above the assessee submits that...the premium of Rs. 6,44,42,000/- on redemption of debentures is taxable under the head ‘capital gain’ and not under the head ‘Income from other sources’”.2. hayworth wisconsinWebApplicable Premium means, with respect to any Note on any Redemption Date, the greater of: Special Interest shall have the meaning assigned thereto in Section 2 (c) hereof. Debenture means debenture stock, mortgages, bonds and any other such securities of the Company whether constituting a charge on the assets of the Company or not. hay wreathWebDebentures are redeemable at three different values. There is a premium value, at par or discount value. Redemption of debentures at premium value means exchanging debentures at a higher value than their face value. Let's say the face value of a debenture is Rs.100. … hay writers at workWebWhen 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 … haywsrd ca 5th fire stationWebObama Ltd. issued 10,000, 10% Debentures of Rs.100 each, at Rs.120 (Debentures issued at Premium), redeemable at par after 5 years, payable Rs.70 n the application and the … hayw stock forecastWeb1 day ago · Redemption Date 27th February 2026 13th April 2028 Redemption Amount ₹10,00,000/- per NCD ₹10,00,000/- per NCD Redemption Premium / Not Applicable Not Applicable CASH FLOWS OPTION I OPTION II 1st Coupon Date Date* 27-02-2024 13-04-24 No of Days 320 366 Amount (₹) Per NCD 70,137 79,000.00 2nd Coupon Date Date* 27-02 … hay wreath formWebThe debentures’ redemption can be repaid in two ways. It can be done either at average or at a premium. The redemption implies redeeming the amount of debentures to the holder. The company prospectus notes all the rules and regulations that are related to the redemption and this starts and entices for allotment of debentures. hay wright