Question : In the lump sum method after redemption of debentures Amount of Debentures Redemption Reserve (DRR) is transferred to _________.
Option 1: General Reserve
Option 2: Capital Reserve
Option 3: General Reserve
Option 4: None of the above
Correct Answer: General Reserve
Solution : Answer = General Reserve
In the lump sum method, after the redemption of debentures, the amount of the Debenture Redemption Reserve (DRR) is typically transferred to the General Reserve. This transfer ensures that funds are set aside for the purpose of debenture redemption and are then retained for general corporate purposes, bolstering financial stability. Hence, the correct option is 1.
Question : After redeeming the debentures, in part or total outstanding debentures, amount of DRR relating to debentures redeemed is transferred to-------
Question : Choose the correct statement
Question : Debentures are redeemed without setting aside an amount to Debentures Redemption Reserve (DRR). It is called redemption ________.
Question : When Debentures are redeemed setting aside amount equivalent to nominal (face) value of outstanding debentures to Debentures Redemption Reserve (DRR). It is known as redemption -------
Question : When Debentures are redeemed setting aside 10% of nominal (face) value of outstanding debentures to Debentures Redemption Reserve (DRR) known as redemption out of --------
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