Multiple choice

If redemption is made by using divisible profits then an amount of profit so used for redeeming nominal value would be transferred to ………………. A/c.

  1. Dividend Equalisation Fund

  2. General Reserve

  3. Capital Redemption Reserve

  4. Securities Premium

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If redemption is made by using divisible profits then an amount of profit so used for redeeming nominal value would be transferred to Capital Redemption Reserve A/c.