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Madura Ltd. Decided to Redeem Its 10,000, 10% Debentures of ₹100 Each at a Premium of 8%. the Minimum Amount Transferred to Debenture Redemption Reserve Will Be : - Accountancy

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MCQ

Choose the appropriate alternative from the given options:
Madura Ltd. decided to redeem its 10,000, 10% debentures of ₹100 each at a premium of 8%. The minimum amount transferred to debenture redemption reserve will be :

Options

  • ₹ 10,00,000

  • ₹ 10,80,000

  • ₹ 2,70,000

  • ₹ 2,50,000

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Solution

The minimum amount to be transferred to Debenture Redemption Reserve will be 25% of the nominal value of debentures as per the Rule 18(7)(c) of the Companies Act, 2013 i.e. ₹ 2,50,000 (₹10,00,000 × 25%).

Hence, the correct answer is ₹ 2,50,000.

Concept: Creation of Debenture Redemption Reserve
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