where no sinking fund exists an amount equal to the nominal value of debentures rede 617086

Fill in the blanks

1. A debenture means a document which creates a _____.

2._____ rate of interest will be paid on debentures periodically.

3.Interest is a charge on profit whereas dividend is _____ of profit.

4.A fixed charge is created on _____.

5.Debentures of a series with Pari Passu clause have to be paid _____.

6.A trust deed is a contract between a company and the _____ for the debenture holders.

7.In accordance with the SEBI Guidelines, a trust deed is to be executed by the issuing company within _____ of the closure of the issue.

8.Securities premium A/c will be shown under the head “ _____ ” in the balance sheet.

9.Discount allowed on issue of debentures is to be treated as _____.

10.Where the value of debentures issued is more than the value of the assets acquired, the difference is to be debited to _____ A/c.

11.As a company cannot issue debentures in fraction, any fractional payment has to be made in _____ .

12.Premium or redemption is to be shown under the head “ _____ ”.

13.Interest on debentures is always calculated on the _____ value of debentures.

14.In case the debentures are tax free, interest payable on debentures has to be _____.

15.Net effective rate of interest is based on the _____ received on debentures and not on the nominal value.

16.DRR is created out of the _____ of the company.

17.A company should create DRR equivalent to _____ of the amount of debenture issue before redemption.

18.No DRR is required for issue of debentures with a maturity period of _____ or less.

19.The terms sinking fund, _____ , debentures sinking fund or debenture redemption sinking fund are synonymous.

20.Where no sinking fund exists, an amount equal to the nominal value of debentures redeemed should be transferred out of divisible profits to _____.