Tata Motors Ltd. Issued 40,000, `7%` Debentures of Rs. 100 each on 1st july, 2009 redeemable at premium of `5%` as under :
`{:("On 31 st March, 2015",,,"16,000 Debentures"),("On 31 st March, 2016",,,"16,000 Debentures"),("On 31 st 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 31 st March, 2013 and balance on 31 st March, 2014 It invested the required amount in terms of the Companies Act, 2013 in Government Securities and decided to realies them required amount in terms of the Companies Act, 2013 in Government Securities and decided to realise them after last redemption. Pass Journal entries ignoring interest.

Answer

Amount transferred to DRR on 31st March, 2014 - Rs. 4,00,000; DRI to be made Rs. 2,40,000, I.e., `15%` of Rs. 16,00,000; Transfer from DRR to General Reserve : 31 st March, 2015 - Rs. 4,00,000; 31 st March, 2016 - Rs. 4,00,000; 31 st March, 2017 - Rs. 2,00,000.