Question

If buyback of Equity shares is not out
of divisible profit, there is no need to
transfer any amount to :

CRR

General Reserve

Profit & Loss

Reserve Fund​

Answer 1

Answer:

If buyback of Equity shares is not out

of divisible profit, there is no need to

transfer any amount to :. CRR

Answer 2

The correct answer is option (1) CRR.

Explanation:

• If buyback of Equity shares is not out of divisible profit, there is no need to transfer any amount to CRR.
• Buy-Back is a corporate action in which a company buys back its shares from the existing shareholders usually at a price higher than market price.
• Capital redemption reserve is used for payment of dividend.
• Capital reserve is a divisible profit.