Question : After redeeming the debentures, in part or total outstanding debentures, amount of DRR relating to debentures redeemed is transferred to-------
Option 1: Capital Reserve
Option 2: General Reserve
Option 3: Capital Redemption Reserve
Option 4: Securities Premium Reserve
Correct Answer: General Reserve
Solution : Answer = General Reserve
After redeeming the debentures, in part or total outstanding debentures, the amount of DRR relating to debentures redeemed is transferred to the General Reserve. This ensures that the reserve remains available for any future redemption obligations and provides flexibility in utilizing the funds for various corporate purposes, enhancing financial stability.
Hence, the correct option is 2.
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