[ISC] Q 43 Redemption of Debenture TS Grewal (2024-25)
Solution of question number 43 of Redemption of Debenture Ts Grewal class 12 ISC Board (2024-25)
Sham Motors Ltd., and unlisted (Non-NBFC/HFC) company, issued 40,000; 7% Debentures of ₹ 100 each on 1st July 2016 redeemable at premium of 5% as under:
| On 31st March, 2022 | 16,000 Debentures |
| On 31st March, 2023 | 16,000 Debentures |
| On 31st March, 2024 | 8,000 Debentures |
It was decided to transfer amount out of profit to Debentures Redemption Reserve ₹ 50,000 on 31st March, 2019; ₹ 1,00,000 on 31st March, 2020 and balance on 31st March, 2021. It invested the required amount in terms of the Companies Act, 2013 in Government Securities and decided to realise them after last redemption. Pass Journal entries ingnoring interest.
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