Accountancy, asked by ravirlyadav8550, 1 year ago

When is the balance of debenture redemption reserve transferred to general reserve?

Answers

Answered by amarbargawan66
9

Answer:

It is transferred in G/R because, DRR is created out of profits of the company & is debited to the statement of P&L(which means profit is reduced). now at the time of redemption of debentures, DRR is transferred to general reserve to give effect to the earlier reduction in profit.

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