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Question
Relay Ltd. (an unlisted Non NBFC) redeems its 8,000, 10% Debentures of ₹ 100 each in instalments as follows:
| Date of Redemption | Debentures to be redeemed |
| 31st March, 2019 | 2,000 |
| 31st March, 2020 | 5,000 |
| 31st March, 2021 | 1,000 |
On the basis of the above details, what will be the amount of Debenture Redemption Reserve which the company will transfer to General Reserve on 31st March, 2021?
Options
₹ 20,000
₹ 50,000
₹ 10,000
₹ 80,000
Solution
₹ 10,000
Explanation:
Amount of Debenture Redemption Reserve, which the company will transfer to General Reserve on 31st March, 2021 is 10,000.
∴ 10% × ₹ 1,00,000 = ₹ 10,000
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