Kindly check question 35:
Q. 35. on 1st April, 2013, the following balances appeared in the books of jeet Ltd.:
9% Debentures (Redeemable on 31st March, 2015) Rs. 30,00,000
Debenture Redemption Rserve Rs. 5,00,000
The Company met the requirments of companies Act, 2013 regarding debenture Redeption Reserve and Debenture Redeption Investments and redeemed the debentures Ignoring interest on investment pass necessary Journal entries for the above transaction in books of the company.
At least 25% DRR must be maintained i.e of Rs. 7,50,000. But here only 5,00,000 DRR is maintained. Hence entry for 2,50,000 will be passed for the creation of Debenture Redemption Reserve.