[ISC] Q 41 Redemption of Debenture TS Grewal (2024-25)

Solution of question number 41 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)

Venus Ltd., an unlisted (Non-NBFC/HFC) company, had 9,000, 9% Debenture of ₹ 100 each due for redemption. These debentures are to be redeemed in 3 equal instalments (starting from 31st March, 2022) at a premium of 10%. The Company had a balance of ₹ 25,000 in the Debenture Redemption Reserve.

Pass necessary entries for redemption, of debentures if company transfers the balance of DRR to General Reserve after redeeming all the debentures.

Solution:-