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Accounting for Sinking Fund

What is the j...

Question

What is the journal entry we pass for investing money in debenture redemption fund?

A

None of these

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B

Either Assets or liabilities

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C

Assets

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D

Liabilities

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Solution

The correct option is C
Assets

The journal entry we pass for investing money in debenture redemption fund -
Debenture Redemption Fund Investment A/c Dr
To Bank A/c

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________________ either increases assets or reduces liability.

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