After redemption is complete, the balance in Debenture Redemption Reserve is transferred to ___

None of these

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General reserve

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Debentureholders a/c

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Debentures a/c

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Solution

The correct option is B
General reserve

After redemption is complete, the balance in Debenture Redemption Reserve is transferred to General Reserve.

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Similar questions

Q. Venus Ltd. had 9,000, 9% Debentures of ₹ 100 each due for redemption . These debentures are to be redeemed in 3 equal installments (starting from 31st March,2015) at a premium of 10%. The company had a balance of ₹ 25,000 in the Debentures Redemption Reserve .
Pass necessary entries for redemption of debentures assuming that company transfer the balance of DRR to General Reserve after redeeming all the debentures.

Q. Debenture redemption reserve is transferred to reserve.

How much amount atleast should be transferred to Debenture Redemption Reserve, if the Debenture value in the balance sheet is Rs 15,00,000?

Q. The amount of should be at least transferred to debenture redemption reserve if the debenture value in the balance sheet is Rs 15,00,000

Kotak Ltd. has the following balance on 1st April, 2016:

Rs.

Statement of Profit & Loss (2,00,000)

Debenture Redemption Reserve 6,00,000

Capital Reserve 5,00,000

It earned a profit of Rs. 10,00,000 for the year ended 31st March, 2017. It decided to transfer Rs. 2,00,000 to Debenture Redemption Reserve and Rs. 3,00,000 to General Reserve. Directors proposed a final dividend of Rs. 1,20,000.

Show how these items will appear in the Balance Sheet and notes to accounts.

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After redemption is complete, the balance in Debenture Redemption Reserve is transferred to ___

The correct option is B General reserve After redemption is complete, the balance in Debenture Redemption Reserve is transferred to General Reserve.

The correct option is B
General reserve

After redemption is complete, the balance in Debenture Redemption Reserve is transferred to General Reserve.