[ISC] Q 1, 2 Redemption of Debenture TS Grewal (2026-27)

Solution of question number 1 and 2 of Redemption of Debenture Ts Grewal class 12 ISC Board (2026-27)

Q. 1. Faith & Belief Ltd., a listed company, had outstanding 5,000, 8% Debenture of ₹ 1,000 each due for redemption on 30th September, 2023, How much amount it should transfer to Debenture Redemption Reserve (DRR) and when?

Solution:-

Nil

Explanation:-

Listed companies are exempted to create DRR for the purpose of Redemption of Debenture.

Q. 2. An unlisted public limited company is a manufacturer of chemical fetiliers having Revenue from Operations of ₹ 50 crore. The company had issued 5,000, 12% Debenture of ₹ 500 each at par. Determine the amount of Debentures Redemption Reserve which it should set asie, i.e., transfer to meet the requirements of law.

Solution:-

DRR = 10% of ₹ 25,00,000

DRR = ₹ 2,50,000

Explanation:-

Unlisted Companies other than NBFC and HFC are required to created DRR equal to 10% of the value of the outstanding Debentures.