Tata Motors Ltd. issued 40,000; 7% Debentures of Rs. 100 each on 1st July, 2009 redeemable at premium of 5% as under:
On 31st March, 2015 – 16,000 Debentures
On 31st March, 2016 – 16,000 Debentures
On 31st March, 2017 – 8,000
Debentures It was decided to transfer amount out of profit to Debentures Redemption Reserve Rs. 2,00,000 on 31st March, 2012; Rs. 4,00,000 on 31st March, 2013 and balance on 31st March, 2014. It invested the required amount in terms of the Companies Act, 2013 in Government Securities and decided to realise them after last redemption. Paas journal entries ignoring interest.
