Question

30. The credit balance in capital reduction a/c is utilised for
(a) Paying off dissentient shareholders (bWriting off deferred expenses
(c) issuing bonus shares
(d) None of the above​

Answer 1

Answer:

The credit balance in capital reduction A/c is utilized for

Answer 2

Answer:

Option (a) Paying off dissentient shareholders is your answer.

Step by step answer:

• A Cash Reduction / Reconstruction Account is used to deduct large amounts of stocks, pay/derecognition, or analyze assets to eliminate unnecessary items such as P / L (Dr), Goodwill, Fictional Property, etc.
• The balance, if any, should be transferred to the Capital Reserve Account. Added to this: Currently, accumulated losses and counterfeit assets can be cleared with the help of a Discounted Account.
• Depreciation is the process of reducing the equity of a company's shareholders through the cancellation of shares and repurchase of shares, also known as the purchase of shares. Depreciation is made by companies for a number of reasons, including increasing the number of shareholders and producing a more efficient financial structure.