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Question
Explain the following term/concept.
Deposit Repayment Reserve Account.
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Solution
- A Deposit Repayment Reserve Account is a special bank account that a company accepting deposits must maintain under Section 73(2)(c) of the Companies Act, 2013.
- Every company is required to deposit not less than 20% of the amount of its deposits maturing during the following financial year in a scheduled bank in this separate account.
The amount must be deposited on or before 30th April each year. - The money in the Deposit Repayment Reserve Account shall be used only for the purpose of repaying deposits when they become due and for no other purpose.
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RELATED QUESTIONS
Return of deposit must be filed every year on or before ______.
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Account which is used only for repaying deposits is called ______.
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| Group 'A' |
Group 'B' |
|
a) Government Company |
1) ___________________ |
|
b) ___________________ |
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|
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3) ___________________ |
|
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(File on or before 30th June, Private Company, Secured deposits, Deposits from public, Maximum tenure of deposits.)
Correct the underlined word and rewrite the following sentence.
Company issues advertisement to invite its members for subscribing to its deposits
Correct the underlined word and rewrite the following sentence.
Minimum tenure of deposit is 36 months.
Arrange in proper order.
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c. Issue Deposit Receipt.
Explain the following term/concept.
Tenure of Deposit
Explain the following term/concept.
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Answer in brief.
State the contents of circular or Advertisement for Deposit
State any four terms and conditions regarding acceptance of deposit.
Justify the following statement.
Companies have to create a charge on their tangible assets while issuing secured deposits.
Find the odd one.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ | ||
| a) | Retained earnings | 1 | ______ |
| b) | ______ | 2 | Written communication |
| c) | 36 months | 3 | ______ |
| d) | ______ | 4 | Charge on assets |
| e) | Cash sales | 5 | ______ |
(Less working capital, Correspondence, Secured debentures, Internal source of finance, Maximum tenure of deposits.)
Arrange in Proper Order:
(a) Payment of Deposits
(b) Deposit Receipt
(c) Acceptance of Deposit
