Redemption of preference shares

Actually, creating a Reserves from retained earnings or capital reserves is a company policy. Personally, I don’t see why a CRR is created for 50% as per companies act. Anyways, it is just for recording and to show it as a security deposit to external stakeholders purpose in case of defaults. While issuing at premium, securities premium account is credited. Contrastingly, during redemption it is debited. Similarly, while creating a reserve, it is credited, and when it is used up, it is debited as its value decrease. I have few examples which will demistify accounting treatments for CRR/DRR and securities premium at the time of redemption.

https://www.yourarticlelibrary.com/accounting/debentures/redemption-of-debentures-in-lump-sum-accounting-entries/46945

In my opinion, a redemption reserve should be created for 100% so that it will reduce the complexities of journalising. Well, what difference would it make when a company is required to create a reserve for 50% of redemption amount by law, another 50% is easy to show for some. Somehow, the CRR will be reversed back to general reserve upon redemption.