a fixed deposit receipt may also be treated as a debenture 2 interest on debenture i 617085

false or true

1.A fixed deposit receipt may also be treated as a debenture.
2.Interest on debenture is paid only when the company earns profit.
3.Debentures carry no voting rights.
4.Debentures lying idle in the company known as debentures stock.
5.Fully convertible debentures (FCD) have highly favourable debt equity ratio.
6.DRR must be created in respect of fully convertible debentures.
7.Dividend is a charge against profit.
8.There is no restriction on the purchase of is own debentures by a company.
9.A floating charge is a mortgage of property.
10.In case a trust deed is executed, then there will be no direct relationship between the shareholder and the company.
11.Technically, debentures A/c is different from that of debentures capital A/c.
12.Discount allowed on issue of debentures A/c is to be shown on the assets side of the balance sheet.
13.Convertible debentures can be issued as a discount.
14.In case of debentures redeemed as premium, then it should be treated as capital profit.
15.TDS, until it is actually paid to the government, should be treated as a liability and shown in the balance sheet of the company.
16.A company can redeem debentures and re-issue then with a different redemption date.
17.When a sinking fund A/c is created, then there is no need for creation of DRR.
18.The annual instalment for sinking fund the redeem of debentures is an appropriation of profit.
19.When a company retains its own debentures as an investment, then interest on them need not be calculated.
20.Profit on conversion of debentures is generally transferred to P&L A/c.