Question

Wellness Co. Ltd. has issued 20,000, 9% Debentures of 100 each at a premium of
1st April, 2018 redeemable as follows:
31st March, 2021 - 10,000 debentures
31st March, 2022 - 4,000 debentures
31st March, 2023
- balance debentures
It transferred to Debenture Redemption Reserve the required amount as applicable rules of the
Companies Act. How much amount will be transferred to General Reserve on 31st March
2021 ?
(a) * 1,00,000
(b) 2,50,000
(c) 5,00,000
(d) 20,00,000​

Answer 1

Answer:

b) 2,50,000

Explanation:

Because redeemable debenture are 10,000 on 31st March 2021 so 25% of ₹10,00,000 will be transfer to General reserve