Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is meant by ‘Issue of debentu

What is ‘Capital Reserve’?

State the meaning of ‘Debentures issued as a collateral security’.

Can the company purchase its own debentures?

What is discount on issue of debentures?

What is a ‘Convertible Debenture’?

Explain the guidelines of SEBI for creating Debenture Redemption Reserve.

Explain the different types of debentures?

What is meant by ‘Issue of debenture at discount and redeemable at premium?

Explain the different terms for the issue of debentures with reference to their redemption.

What do you mean by Ratio Analysis?

List the techniques of Financial Statement Analysis.

State the meaning of financial statement analysis?

What are various types of ratios?

Distinguish between Vertical and Horizontal Analysis of financial data.

What are limitations of financial statement analysis?

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

State the meaning of Analysis and Interpretation.

List any three objectives of analysing financial statements?

The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?

What do you mean by Ratio Analysis?

The average age of inventory is viewed as the average length of time inventory is held by the firm or as the average number of days’ sales in inventory. Why?

How will you disclose the following items in the Balance Sheet of a company;
(i) Loose tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures redemption reserve
(iv) Mastheads and publishing titles                                                                        (v) 10% debentures
(vi) Proposed dividend
(vii) Share forfeited account
(viii) Capital redemtion reserve
(ix) Mining rights
(x) Work-in-progress

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

Explain how common size statements are prepared giving an example.

What do you mean by Common Size Statements?

Prepare the format of balance sheet and explain the various elements of balance sheet.

How would you study the Solvency position of the firm?

What are liquidity ratios? Discuss the importance of current and liquid ratio.