Accountancy, asked by jollyjain2258, 1 year ago

Why debenture redemption reserve transferred to general reserve?

Answers

Answered by jothika24

Answer:

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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