Question : Ram Ltd., an unlisted company, has outstanding 1000,8% Debentures of Rs. 100 each redeemable at a premium of Rs. 10 each. Out of these, 500debentures are to be redeemed on 31st December 2020. As of the date of the redemption, Debentures Redemption Investment should be
Option 1: Rs. 7,500
Option 2: Rs. 8,250
Option 3: Rs. 15,000
Option 4: Rs.16,500
Correct Answer: Rs. 7,500
Solution : Answer = Rs. 7500
The face value of debentures redeemed Rs 50,000.
The amount transferred to DRR is 15% of Rs 50,000 = Rs 7500
Hence, the correct option is 1.