Question

Difference between capital redemption reserve and debenture redemption reserve

Answer 1

Capital redemption reserve

• The legal provisions are applicable under the act of section 80 companies act.
• They will be created with redeeming under the preference of divisible profits will be created.
• The nominal value of preference shares will be enclosed due to the sector, and the benefits could be created.
• Utilization of roan with bound bounce shares will get issue fully.

Debenture redemption reserve

• The legal provisions are applicable under the act of section of 117 companies act.
• Preferable shares of redemption to redeemable debentures.
• The free purpose of reduction will have payment divided issues like bounce, shares, etc.