Advertisement Remove all ads

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

MCQ

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:

Options

  • ₹ 8,00,000

  • ₹ 4,00,000

  • ₹ 2,00,000

  • ₹ 2,20,000

Advertisement Remove all ads

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. ₹ 2,00,000.

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

Concept: Creation of Debenture Redemption Reserve
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×