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Debenture Redemption Reserve

How much amou...

Question

How much amount atleast should be transferred to Debenture Redemption Reserve, if the Debenture value in the balance sheet is Rs 15,00,000?

A

350000

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B

3500

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C

375000

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D

37500

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Solution

The correct option is C
375000

Amount at least transferable to debenture redemption reserve
= 25% of value of outstanding debentures
= 25% * 15,00,000

= 3,75,000

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