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Question

Conversion of debenture into share capital results in _________.

A
sources of funds
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B
sources of cash
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C
application of funds
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D
no flow of fund
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Solution

The correct option is A no flow of fund
Conversion of debenture through share capital does not involve any outflow of funds.
Its only an accounting transaction where debentures are converted into shares. No funds are utilized in such case.

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