Barua Ltd. (a listed NBFC) redeems its 9,000, 10% Debentures of ₹ 100 each in instalments as follows:
Barua Ltd. (a listed NBFC) redeems its 9,000, 10% Debentures of ₹ 100 each in instalments as follows:
You are required to prepare the Debenture Redemption Investment Account for the years 2020 – 21 and 2021-22.
| Date of Redemption | Debentures to be Redeemed |
| 31st March, 2020 | 3,000 |
| 31st March, 2021 | 5,000 |
| 31st March, 2022 | 1,000 |
Anurag Pathak Changed status to publish November 2, 2023
Solution:-
Hint:-
(i) DRI = 15% of ₹ 3,00,000 = ₹ 45,000
(2) DRI = 15% of ₹ 5,00,000 = ₹ 75,000. As 45,000 is already invested, rest ₹ 30,000 is further invested to make it equal to 15% of ₹ 5,00,000.
(3) DRI – 15% of 1,00,000 = ₹ 15,000. As 75,000 is already invested, thus ₹ 60,000 invested would be realised to make it equal to 15% of ₹ 1,00,000.
(4) Rest of the investment ₹ 15,000 realised at the last installment of the redemption of debentures.
Anurag Pathak Changed status to publish November 2, 2023
