Advertisements
Advertisements
Question
Shashi Ltd. decided to redeem its 8,000, 11% Debentures of ₹ 100 each at a premium of 10%. The minimum amount transferred to Debenture Redemption Reserve will be: (assume that the company is not listed)
Options
₹ 8,00,000
₹ 4,00,000
₹ 2,00,000
₹ 2,20,000
MCQ
Solution
₹ 2,00,000
Explanation:
Nominal value of Debentures = 8,000 × ₹ 100 = ₹ 8,00,000
= 25% of Nominal value of Debentures
= 25% of ₹ 8,00,000
= ₹ 2,00,000
shaalaa.com
Redemption of Debentures
Is there an error in this question or solution?