Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Where will Debenture Redemption Reserve be transferred after the redemption of all debentures?
Options:
Capital reserve
Sinking fund
Profit and loss Account
General reserve
Correct Answer:
General reserve
Explanation:
After redemption is complete, the balance in Debenture Redemption Reserve is transferred to General Reserve.