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Which of the following statements is false?
  • a)
    Capital redemption reserve cannot be used for writing off miscellaneous expenses and losses
  • b)
    Capital profit realized in cash can be used for payment of dividend
  • c)
    Reserves credited by revaluation of fixed assets are not permitted to be capitalized
  • d)
    Dividend is payable on the calls paid in advance by shareholders
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements is false?a)Capital redemption reserv...
False Statement: Dividend is payable on the calls paid in advance by shareholders.

Explanation:
- Capital Redemption Reserve: Capital redemption reserve is created out of profits which can be utilized for the redemption of preference shares and it cannot be used for writing off miscellaneous expenses and losses.
- Capital Profit: Capital profit realized in cash can be used for payment of dividend. Capital profit is the profit which arises from the sale of fixed assets or revaluation of fixed assets.
- Reserves from Revaluation: Reserves credited by revaluation of fixed assets are permitted to be capitalized. The revaluation reserve is created when the value of the assets is revalued upwards.
- Calls Paid in Advance: Dividend is not payable on the calls paid in advance by shareholders. Calls in advance is a liability and it is not considered as a part of paid-up capital.

Therefore, option D is false as dividend is not payable on the calls paid in advance by shareholders.
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Which of the following statements is false?a)Capital redemption reserv...
Dividend payable is collected from the share holders in the form os 1st 2nd and third or final calls in advance so d
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Which of the following statements is false?a)Capital redemption reserve cannot be used for writing off miscellaneous expenses and lossesb)Capital profit realized in cash can be used for payment of dividendc)Reserves credited by revaluation of fixed assets are not permitted to be capitalizedd)Dividend is payable on the calls paid in advance by shareholdersCorrect answer is option 'D'. Can you explain this answer?
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Which of the following statements is false?a)Capital redemption reserve cannot be used for writing off miscellaneous expenses and lossesb)Capital profit realized in cash can be used for payment of dividendc)Reserves credited by revaluation of fixed assets are not permitted to be capitalizedd)Dividend is payable on the calls paid in advance by shareholdersCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following statements is false?a)Capital redemption reserve cannot be used for writing off miscellaneous expenses and lossesb)Capital profit realized in cash can be used for payment of dividendc)Reserves credited by revaluation of fixed assets are not permitted to be capitalizedd)Dividend is payable on the calls paid in advance by shareholdersCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is false?a)Capital redemption reserve cannot be used for writing off miscellaneous expenses and lossesb)Capital profit realized in cash can be used for payment of dividendc)Reserves credited by revaluation of fixed assets are not permitted to be capitalizedd)Dividend is payable on the calls paid in advance by shareholdersCorrect answer is option 'D'. Can you explain this answer?.
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