To provide necessary funds for the discharge of debentures, the company may adopt any of the following courses:- 1. By Creation of Debenture Redemption Fund or Sinking Fund 2. Insurance Policy Method. 1. By Creation of Debenture Redemption Fund or Sinking Fund: The ideal method is to set aside every year a certain sum of money by creating a Sinking [...]
After reading this article you will learn about the arguments in favour and against capital levy. Arguments in Favour of Capital Levy: Usually the following arguments are put forward justifying capital levy: 1. During the war, the poor sections of the community suffer more in terms of risking their lives by joining the defence force and out of inflationary situation [...]
The following points highlight the top eight problems on redemption on preference shares with their relevant solutions. Illustration 1: On 31st March, 2012 the balance sheet of Utopia Limited stood as follows: Illustration 2: Following is the Balance Sheet of R. Ltd. as on March 31, 2012: Illustration 3: On 1st April, 2012 the following balances were extracted from the [...]