[ISC] Q 12 Redemption of Debenture TS Grewal (2024-25)

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

Sherry Ltd. (a listed NBFC) has 50,000, 6% Debentures of ₹ 100 each due for redemption on 31st March, 2022. It invested in Debentures Redemption Investments on 1st April, 2021 and realised it at 105% and redeemed the debentures.

Determine the sale of value of investments.

Solution:-

Debentures Redemption Investment = 50,00,000 ✕ 15% = ₹ 7,50,000

Debenture Redemption Investment Realised = 7,50,000 ✕ 105% = ₹ 7,87,500