[ISC] Q 3, 4 Redemption of Debenture TS Grewal (2026-27)

Solution of question number 3 and 4 of Redemption of Debenture Ts Grewal class 12 ISC Board (2026-27)

Q. 3. Dow Housing Finance Ltd. issued ₹ 2,00,000; 8% Debentures of ₹ 10 each at a premium of 8% on 30th June, 2020 redeemable on 31st March, 2023. How much amount should be transferred to Debentures Redemption Reserve?

Solution:-

Nil

Explanation:- Housing Finance Corporation (listed and unlisted) are exempted from creating DRR for the purpose of Redemption of Debentures

Q. 4. Care Products Ltd., a listed company, has outstanding 2,000, 8% Debentures of ₹ 1,000 each redeemable at a premium of 10% on 31st December 2023. How much amount it will transfer to Debentures Redemption Reserve before the redemption of debentures?

Solution:-

Nil

Listed company are not required to create DRR for the purpose of redemption of debenture.