Sinking funds is created for___________.

redemption of long term liabilities

No worries! We‘ve got your back. Try BYJU‘S free classes today!

replacement of depreciable assets

No worries! We‘ve got your back. Try BYJU‘S free classes today!

both (A & B)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

none of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B both (A & B)
Option C is the correct One.
there are two main purposes of creating Sinking fund
1. Repayable of long term debt
2.Certain amount keep aside for the payment of regular expenses for the specific purpose.

Suggest Corrections

Similar questions

Q. Sinking funds is created for

Q. Under sinking fund method of depreciation any surplus in sinking fund A/c is transferred to ____________.

Q. Under sinking fund method of depreciation any deficit in sinking fund A/c is transferred to ____________.

Q. Sinking fund is created in ___________.

Under Sinking Fund method, Sinking Fund or Debenture Redemption Fund of _______ the amount of present value of redemption amount of debentures is created out of profits every year.

Join BYJU'S Learning Program

Sinking funds is created for___________.

The correct option is B both (A & B)Option C is the correct One.there are two main purposes of creating Sinking fund1. Repayable of long term debt2.Certain amount keep aside for the payment of regular expenses for the specific purpose.

The correct option is B both (A & B)
Option C is the correct One.
there are two main purposes of creating Sinking fund
1. Repayable of long term debt
2.Certain amount keep aside for the payment of regular expenses for the specific purpose.