Question
Where debentures are issued by a company, the company
shall create a debenture redemption reserve account_______________Solution
Companies Act, Section 71. Debentures- (4) Where debentures are issued by a company under this section, the company shall create a debenture redemption reserve account out of the profits of the company available for payment of dividend and the amount credited to such account shall not be utilised by the company except for the redemption of debentures.
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