Question

According to Indian Cooperative Societies Act, 1912, each society must transfer at least ___ of its profits to general reserve.

• A. One third
• B. One fourth
• C. One half
• D. One tenth

Answer 1

The correct option is B One fourth

According to the Indian Cooperative Societies Act, 1912, each society must transfer at least one-fourth of its profits to general reserve because as per the act any registered society must transfer one-fourth of the net profits in any year to a reserve fund and further to contribute an amount not exceeding ten percent. of the remaining net profits to any charitable purpose.

Thus the correct answer is B.