Question

Which account is to be debited while setting aside profits as a reserve?

• A. Profit or loss A/c
• B. Debenture Redemption Reserve A/c
• C. Debenture Redemption Investment A/c
• D. Bank A/c

Answer 1

The correct option is A

Profit or loss A/c

Profit or loss A/c is to be debited while setting aside profits as a reserve.