Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
A company had Rs 10,00,000; 12% Debentures due for redemption. The company had a balance of Rs 2,00,000 in its DRR. How much amount would it transfer to Debenture Redemption Investment Account?
Options:
₹2,00,000
₹1,50,000
₹2,50,000
None of these
Correct Answer:
₹1,50,000
Explanation:
Minimum DRI required 15% of total value = 15% * 10,00,000 = 1,50,000