[ISC] Q 32 Redemption of Debenture TS Grewal (2024-25)

Solution of question number 32 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)

Apollo Ltd., an unlisted (Non-NBFC/HFC) company, issued 21,000: 8% Debentures of ₹ 100 each on 1st April, 2016 redeemable at a premium of 8% on 30th June,2023The company decided to transfer the required amount to Debentures Redemption Reserve in three equal annual instalments starting with 31st March, 2022. Required investment was made in Government Securities on 30th April, 2023. 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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