Which account is to be debited to transfer interest on investment to debenture redemption fund?

None of these

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Sinking fund table

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Investment table

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Funds table

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Solution

The correct option is B
Sinking fund table

Interest on investment A/c is to be debited to transfer interest on investment to debenture redemption fund

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Q. The balance of sinking fund investment account after the realization of investment is transferred to:

On January 01, 2012, X. Ltd. issues 5,000, 8% Debentures of Rs 100 each repayable at par at the end of three years. It has been decided to set up a cumulative sinking fund for the purpose of their redemption. The investments are expected to realise 4% net. The Sinking Fund Table shows that Rs 0.320348 amounts to one rupee @4% per annum in three years. On December 31, 2015 the balance at bank was Rs 2,42,360 and the investments realised Rs 3,25,000. The debentures were paid off.

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Which account is to be debited to transfer interest on investment to debenture redemption fund?

The correct option is B Sinking fund table Interest on investment A/c is to be debited to transfer interest on investment to debenture redemption fund

The correct option is B
Sinking fund table

Interest on investment A/c is to be debited to transfer interest on investment to debenture redemption fund