Challenger App

No.1 PSC Learning App

1M+ Downloads
Profit from redemption of debentures should be kept as

ASecret Reserve

BCapital Reserve

CReserve Fund

DSinking Fund

Answer:

B. Capital Reserve

Read Explanation:

Profit from redemption is a capital profit, hence transferred to Capital Reserve.


Related Questions:

All nominal accounts totals are transferred to trading or profit and loss account by------------- passing entry
Work-in-progress is generally valued at
Surplus/deficit of non-profit organization is transferred to
If bad debts once written off subsequently recovered, it will be shown
The Trading Account is prepared to ascertain the ____________