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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: -

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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
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