[ISC] Q 25, 26 Redemption of Debenture TS Grewal (2026-27)
Solution of question number 25 and 26 of Redemption of Debenture Ts Grewal class 12 ISC Board (2026-27)
Q. 25. Dhara Ltd., an unlisted manufacturing company, has 75,000, 8% Debentures of ₹ 100 each due for redemption at par on 31st March, 2026. On this date the company had the required amount of 7,50,000
in its Debenture Redemption Reserve.
Debenture Redemption Investment, which was purchased on 30th April, 2025, was realised at 102% on the date of redemption of the debentures and debentures were redeemed.
You are required to pass Journal entries in the books of the company for the year 2025–26 (Ignore Interest on Debentures).
Solution:-
Q. 26. On 1st April, 2021, following were the balances of Blue Bird Ltd., an unlisted (Non-NBFC/HFC) Company:
| ₹ | |
| 10% Debentures (redeemable out of profits on 30th September, 2022) | 5,00,000 |
| Securities Premium | 2,00,000 |
| General Reserve | 4,00,000 |
| Surplus, i.e., Balance in Statement of Profit & Loss | 1,00,000 |
The company met the requirements of the Companies Act, 2013 for Debentures Redemption Reserve and Investment and redeemed the debentures.
Pass necessary Journal entries for the above transactions in the books of the company.
Solution:-
