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Where is ‘Debenture Redemption Reserve’ transferred after the redemption of all debentures? - Accounts

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Question

Where is ‘Debenture Redemption Reserve’ transferred after the redemption of all debentures?

Options

  • Capital Reserve Account

  • General Reserve Account

  • Statement of Profit and Loss

  • Sinking Fund Account

MCQ
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Solution

General reserve account

Explanation:

After all debentures have been redeemed, the balance in the Debenture Redemption Reserve (DRR) is transferred to the general reserve account, as it is no longer required for redemption purposes.

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Chapter 8: Company Accounts - Redemption of Debentures - OBJECTIVE TYPE QUESTIONS [Page 8.47]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 8 Company Accounts - Redemption of Debentures
OBJECTIVE TYPE QUESTIONS | Q (A) 7. | Page 8.47
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