IndigoLearn

Forums

Redemption of debentures, practical qn 3

Sir , usually in DRR ac we will transfer the balance amount of general reserve. But in this sum, it's quite different. They are transferring only 10% to general reserve. Why aren't they transferring balance amount to general reserve

6b97c58a-2121-45fe-9c54-6ddcbe95a215.jpg

Nandhini Ramesh

Nandhini Ramesh

CA Inter

310

15-Jan-22

74

Answers (4)

Please post the full question


sudha reddy

sudha reddy

Moderator

17-Jan-22

3rd qn

a30d5fbe-6d68-43f2-a610-980f4e4e4f2e.jpg

Thread Starter

Nandhini Ramesh

Nandhini Ramesh

CA Inter

310

22-Jan-22

Thread Starter

Nandhini Ramesh

3rd qn

Because Creation of DRR for unlisted companies (residuary) is 10% of maturing debenture of the year ending that should be created as per the provisions. Refer theory section of icai material properly


Prakash Murugan

Prakash Murugan

CA Inter

690

22-Jan-22

We transfer back the amount of DRR to General Reserve when all debentures have been redeemed. Here debentures are still outstanding - they have just cancelled few.. So, w.r.t. 8,000 debentures, the amount of DRR which was created, they are just transferring that back


Sahibdeep Singh

Sahibdeep Singh

Moderator

26-Jan-22

ACCA Webinar
BLR STUDENTS MEET
CBE Students meet
Meet Rajyalakshmi
Testimonials CA Inter May'22
Live Interview | AIR 1 & 2
ACCA Launch
CLAW Inter - Live H + E
Scholarship
Nov 22 exams
Quote for the Day
Past_Exams
Combo Discounts
Wishes to Rankers
CA Foundation Testimonials
Study Planner
Tally + Excel Free
Upgrade your Skills
FR + SFM
Refer
EMI