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Redemption of debentures, practical qn 3

Accountancy

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

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Nandhini Ramesh

Nandhini Ramesh

CA Inter

310

15-Jan-22 12:30

159

Answers (4)

Please post the full question


Sudha Reddy

Sudha Reddy

CA Final

20K+

17-Jan-22 11:19

3rd qn

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Thread Starter

Nandhini Ramesh

Nandhini Ramesh

CA Inter

310

22-Jan-22 11:55

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

710

22-Jan-22 19:40

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

CA Inter

14K+

26-Jan-22 19:23

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