[ISC] Q 7 Redemption of Debenture TS Grewal (2024-25)

Solution of question number 7 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)

Star Finance Ltd., an unlisted NBFC issued 2,00,000; 8% Debentures of ₹ 10 each at a premium of 8% on 30th June, 2019 redeemable on 31st March, 2023. How much amount it should transfer to Debentures Redemption Reserve before the redemption of debentures?

Solution:-

NIL

Unlisted Non-Banking Finance Companies are exempted to create DRR for the purpose of Redemption of Debentures.