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Class 12 Accountancy TS Grewal Solutions Volume 2 Chapter 10 Redemption of Debentures

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Last updated date: 17th Apr 2024
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Free PDF Download of Class 12 Accountancy Chapter 10 Available

The Class 12 TS Grewal Solutions Accountancy Chapter 10 is briefed for students to understand better the concepts and procure good scores. The TS Grewal Solution is a prominent reference source for Commerce students. The Pdf solutions provide a comprehensive outline of the solved exercise questions that can enhance and better the preparation or revision process. Students can download the chapter-wise solutions curated by experts from here and prepare accordingly.

About Chapter 10 - Redemption of Debentures

TS Grewal Solutions Class 12 Accountancy Volume 2 Chapter 10 - Redemption of Debentures Important Topics Enlisted in Class 12 Accountancy Redemption of Debentures


The Class 12 Accountancy Redemption of Debentures chapter provides a comprehensive view of all the essential concepts and topics important for annual tests and board examination. Students will acquire a brief knowledge on the following-

  • Meaning of Redemption of Debentures 

  • The time required for Redemption of Debentures

  • The various Redemption of Debentures Methods 

  • Sources of Redemption of Debentures

  • Redemption of Debenture out of capital

  • Redemption of Debenture out of profit

  • Redemption of Debenture Reserve

  • Accounting Treatment

  • Journal


Importance of TS Grewal Class 12 Chapter 10 Solutions 2024-25

Class 12 TS Grewal Solution Accountancy Chapter 10 Solution is a reliable and credible source of reference that provides elementary understanding and a thorough comprehension of the chapter- Redemption of Debentures. The TS Grewal Class 12 Chapter 10 Solutions 2024-25 plays an important role as-

  • It provides solutions in a clear, simple, and understandable manner for students to comprehend.

  • The Solutions offer precise and concise answers to all problems relating to Class 12 TS Grewal Solution Accountancy Chapter 10 Solution

  • Solutions play a vital role in aiding every student’s preparation and revision process.

  • The Class 12 Accounts TS Grewal Solutions Chapter 10 provide solved exercise questions as per the latest and updated CBSE Syllabus.


Features of TS Grewal Accountancy Class 12 Solutions Chapter 10

  • The Class 12 Accounts TS Grewal Solutions Chapter 10 is written in a simple and comprehensible language for students to understand.

  • The Solutions offer chapter-wise detail of all the important topics or concepts.

  • The TS Grewal Solutions offer simplified solutions to complex and difficult problems on Redemption of Debentures.

  • These solutions act as great material for preparation and revision.

  • The TS Grewal Accountancy Class 12 Solutions Chapter 10 provides study materials according to the latest CBSE Syllabus.


Preparation Tips

  • Students must have a thorough comprehension of the definitions, along with their meaning.

  • The most effective preparation approach is memorizing all the important definitions and writing them down in the best possible way.

  • Students must make a note of all the important formulas related to Redemption of Debentures and try to remember them all.

  • Students must comprehend the logic and reasoning behind the concepts enlisted in the Class 12 Accounts TS Grewal Solutions Chapter 10.


Conclusion

The TS Grewal Class 12 Solutions for Accountancy Volume 2 Chapter 10- Redemption of Debentures is a chapter that commerce students should take into consideration during preparation or revision for the exam. 


Important Topics Links

Some of the important topics links related to this chapter are listed below.

 

Commerce Related Links

FAQs on Class 12 Accountancy TS Grewal Solutions Volume 2 Chapter 10 Redemption of Debentures

1. What is redemption of debentures?

It is typically defined as the process of a firm repaying its debenture holders for debentures it has issued. In other words, it is the process of repaying debenture holders the principal amount owed to them. For most businesses, it's a significant transaction because the redemption amount is relatively large.


When debentures are redeemed, the issuing company is relieved of its portion of the liability and the liability is removed from the balance sheet. As a result, firms collect money for reclaiming debentures and develop a strong provision out of their gains.

The redemption terms are usually indicated in the debenture certificate. To know more about this topic, click here.

2. What is payment in lump sum and payment in installments?

Payment in lump sum and payment in installments in explained below:

  • Payment in lump sum: As per the terms and conditions of issue, the firm reclaims the debentures by paying the fund in a round sum to the debenture holders upon maturity.

  • Payment in installments: Under this technique, debentures are normally redeemed in installments on a specific date during the debentures' holding period. The total number of years is divided by the total amount of debenture liability. It is important to note that the authentic reclaimable debentures are recognised by the sources for pulling the requisite number of lots from the outstanding debentures for payment.

3. What is purchase in the open market or conversion into shares or new debentures?

Purchase in the open market or conversion into shares or new debentures is explained below:

  • Purchase in the open market: When a company buys its own debentures with the intention of canceling them, the act of buying and canceling the debentures is referred to as redemption of debentures by purchase in the open market.

  • Conversion into shares or new debentures: A company can reclaim its debentures by converting them into shares or new debentures. If holders of debentures find the offer useful, they can use their entitlement to convert their debentures into new classes of debentures or shares. These new shares or debentures might be issued at a premium, a discount, or at face value. This strategy is only relevant to convertible debentures, it should be emphasized.

4. Explain the issue of debentures as collateral security

When a business takes out a loan, it may have to put up primary security in the form of its assets. The lending institution, on the other hand, may require additional assets as supplementary or collateral security. The corporation may issue debentures to the lender as secondary or collateral security in this case; this type of debenture issue is known as debentures issued as collateral security.


Only in the event that the company fails to return the loan in full, including interest, and the primary security is insufficient to repay the loan, is the lender free to use the debentures as collateral security. The lender has the option of redeeming the debentures or selling them on the open market.

5. How to prepare for the lesson Redemption of Debentures?

It is important for students to have a strong base knowledge in the subject of debentures to understand this subject better. As having a strong foundation is important for students to acquire further knowledge on this subject. Students need to be thorough with concepts like payment in lump sum, payment in installments, purchase in the open market and conversion into shares or new debentures. Students can also practice with sample papers and solve problems related to the topic. The Vedantu app and website contain free study materials.