[ISC] Q 16 Redemption of Debenture TS Grewal (2024-25)
Solution of question number 16 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)
Ramada Ltd. had outstanding 10,000, 8% Debentures of ₹ 100 each due for redemption as follows:
| On 31st July, 2021 | 2,000 Debentures |
| On 31st July, 2022 | 3,000 Debentures |
| On 31st July, 2023 | Balance Debentures |
Explain how the company will invest in specified securities to redeem the debentures.
Solution:-
It will invest ₹ 30,000 (i.e., 15% of ₹ 2,00,000) in specified securities on or before 30th April, 2021.
If will further invest ₹ 15,000 in specified securities on or beofre 30th April, 2022 to make totl investment equal to ₹ 45,000 (i.e., 15% of ₹ 3,00,000).
If will further invest ₹ 30,000 in specified securities on or before 30th April, 2023 to make total investment equal to ₹ 75,000 (i.e., 15% of ₹ 5,00,000).
Before redemption of 5,000, 8% Debentures on 31st July, 2023, the investment will be realised.
