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Shahi Ltd. Decided to Redeem Its 8,000, 11% Debentures of ₹ 100' Each at a Premium of 10%. the Minimum Amount Transferred to the Debenture Redemption Reserve Will Be: - Accountancy


Choose the appropriate alternative from the given options:
Shahi Ltd. decided to redeem its 8,000, 11% debentures of ₹ 100' each at a premium of 10%. The minimum amount transferred to the debenture redemption reserve will be:


  • ₹ 8,00,000

  • ₹ 4,00,000

  • ₹ 2,00,000

  • ₹ 2,20,000

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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. ₹ 2,00,000.

Hence, the correct answer is ₹ 2,00,000.

Concept: Creation of Debenture Redemption Reserve
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