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Question
Choose the appropriate alternative from the given options:
Madura Ltd. decided to redeem its 10,000, 10% debentures of ₹100 each at a premium of 8%. The minimum amount transferred to debenture redemption reserve will be :
Options
₹ 10,00,000
₹ 10,80,000
₹ 2,70,000
₹ 2,50,000
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. ₹ 2,50,000 (₹10,00,000 × 25%).
Hence, the correct answer is ₹ 2,50,000.
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