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• On 1st April, 2011, F Ltd. Issued Rs.40,00,000, 7% Debentures of Rs.100 each at a premium of 5% redeemable at a premium of 10% at the end of 4 years. Investment as required by law was made in fixed depositof the bank on 30th April earning interest @6% p.a. Pass journal entries at the time of Redemption of Debentures.
• SRCC Ltd. has issued on 1st April, 2017, 20,000, `12%` debentures of Rs. 100 each redeemable by draw of lots as under : `{:("During the year ended on 31st March, 2018",,:,15%),("During the year ended on 31st March, 2019",,:,25%),("During the year ended on 31st March, 2020",,:,15%),("During the year ended on 31st March, 2021",,:,25%),("During the year ended on 31st March, 2022",,:,20%):}` How much minimum investment should be made by SRCC Ltd. as per Companies Act, 2013 before redemption of debentures ? When should it be made ?
• Mudra Ltd. Had 10,000, 12% Debentures of Rs.100 each due for redemption at a premium of 5% on March 31, 2018. The Board of Directors of the company decided to transfer the required amount to Debenture Redemption Reserve. Required investment was also made and the debentures were redeemed. Pass necessary journal entries.
• On 1-1-2010 a Public Limited Company issued 15,000, 10% Debentures of Rs.100 each at par which were repayable at a Premium of 15% on 31-3-2015. On the date of maturity, the company decided to redeem the above mentioned 10% Debentures as per the terms of issue, out of profits. Required investment is made on 30th April, 2014 in fixed deposit bearing interest @8% p.a. Bank deducted TDS @10% on its maturity i.e. 31st March 2015. Pass the necessary journal entries in the books of the Company for the redemption of Debentures.
• X Ltd. Wants to redeem 5,000, 5% Debentures of Rs.100 each at 5% premium. How much amount it must transfer to Debenture Redemption Reserve, if it has already a balance of Rs.1,00,000 in Debenture Redemption Reserve Account?A. Rs.4,00,000B. Rs.25,000C. Rs.2,00,000D. Rs.2,50,000
• Debentures can be redeemed :A. By issue of new sharesB. By existing resourcesC. By Accumulated profitsD. By all of the above
• Debentures can be redeemed :A. By annual drawingsB. By purchase in the open marketC. By ConversionD. By all of the above
• Which account is debited for transfer of profit to DRR ?
• What is meant by Redemption of Debentures ?
• Priya Ltd. Issued 30,000, 8% debentures of Rs.200 each on August 1, 2011 redeemable as follows : `"On 31st March, 2015 6,000 Debentures"` `"On 31st March, 2016 7,000 Debentures"` `"On 31st March, 2017 7,000 Debentures"` `"On 31st March, 2018 10,000 Debentures"` It was decided to transfer Rs.4,00,000 to Debenture Redemption Reserve on March 31, 2012 and March 31, 2013 and balance required to be transferred to Debenture Redemption Reserve on March 31, 2014. Record necessary journal entries. Ignore entries for payment of interest.