Advertisements
Advertisements
Question
What is the balance of Debenture Redemption Reserve transferred to General Reserve?
Short Answer
Advertisements
Solution
The Debenture Redemption Reserve (DRR) will transfer funds to the General Reserve in proportion to the debentures that were redeemed. For example, if the amount of Outstanding Debentures is ₹ 20,00,000 and there is a DRR of f ₹ 2,00,000, then if 40% i.e., ₹ 8,00,000 debentures are redeemed, 40% of ₹ 2,00,000 i.e., ₹ 80,000 shall be transferred to General Reserve.
shaalaa.com
Is there an error in this question or solution?
