Which A/c is credited for the transfer of interest on Debenture Redemption Fund Investment?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Debenture Redemption Fund A/c.
Debenture Redemption Fund A/c is credited.
THE FOLLOWING JOURNAL ENTRY IS PASSED FOR THE TRANSFER OF INTEREST-
Interest on Sinking Fund Investment A/C......Dr.
To Sinking Fund A/C
So, here Debenture Redemption Fund A/c is credited.