[ISC] Q 23, 24 Redemption of Debenture TS Grewal (2026-27)
Solution of question number 23 and 24 of Redemption of Debenture Ts Grewal class 12 ISC Board (2026-27)
Q. 23. Godrej Ltd., and unlisted (Non-NBFC/HFC) company, has 20,000; 7% Debentures of ₹ 100 each due for redemption out of profits on 31st August, 2021. It has a balance of ₹ 7,50,000 in Debentures Redemption Reserve Account as on 31st March, 2020. Investment, as required by the Companies Act, 2013 is made on 1st April, 2021 in fixed deposit bearing interest @ 6% p.a. Bank deducted TDS @ 10% on its maturity.
Pass Journal entries for redemption of debentures.
Solution:-
Q. 24. Apollo Ltd., an unlisted (Non-NBFC/HFC) company, issued 21,000: 8% Debentures of ₹ 100 each on 1st April, 2014 redeemable at a premium of 8% on 30th June,2021. The company decided to transfer the required amount to Debentures Redemption Reserve in three equal annual instalments starting with 31st March, 2019. Required investment was made in Government Securities on 30th April, 2021. Ignore Interest on debentures and also investment.
Pass necessary Journal entries regarding issue, transfer to DRR, investment, and redemption of debentures.
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