[ISC] Q 25 Redemption of Debenture TS Grewal (2024-25)

Solution of question number 25 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)

IFCI Ltd. (an other Financial Institution as per Section 2(72) of the Companies Act, 2013) issued 10,00,000; 9% Debentures of ₹ 50 each on 1st April, 2017 redeemable on 1st April, 2023. How much amount should be set aside to Debentures Redemption Reserve before the redemption of debentures? Also, pass Journal entries for issue and redemption of debentures.

Solution:-

NIL

Debentures Redemption Reserve is not to be created, it being an other Financial Institution as per Section 2 (72) of the Companies Act, 2013.