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Direction: Choose the correct answer to the following questions from the given alternatives:
The balance of sinking fund investment account after the realisation of investments is transferred to:
  • a)
    Profit and loss account,
  • b)
    Debentures account,
  • c)
    Sinking fund account.
  • d)
    None of these
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Direction: Choose the correct answer to the following questions from t...


  • Transfer of balance: The balance of sinking fund investment account after the realisation of investments is transferred to the sinking fund account.



  • Purpose of sinking fund: Sinking fund is created to ensure that funds are available for the repayment of debentures or other long-term liabilities when they become due.



  • Realisation of investments: When the investments made from the sinking fund are realised, the resulting amount is transferred back to the sinking fund account.



  • Utilisation of sinking fund: The sinking fund is used to ensure that the company has sufficient funds to meet its long-term financial obligations.



  • Conclusion: Therefore, the correct answer is option C: Sinking fund account, as the balance of sinking fund investment account is transferred back to the sinking fund account after the realisation of investments.

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Direction: Choose the correct answer to the following questions from the given alternatives:The balance of sinking fund investment account after the realisation of investments is transferred to:a)Profit and loss account,b)Debentures account,c)Sinking fund account.d)None of theseCorrect answer is option 'C'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from the given alternatives:The balance of sinking fund investment account after the realisation of investments is transferred to:a)Profit and loss account,b)Debentures account,c)Sinking fund account.d)None of theseCorrect answer is option 'C'. 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 Direction: Choose the correct answer to the following questions from the given alternatives:The balance of sinking fund investment account after the realisation of investments is transferred to:a)Profit and loss account,b)Debentures account,c)Sinking fund account.d)None of theseCorrect answer is option 'C'. 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 Direction: Choose the correct answer to the following questions from the given alternatives:The balance of sinking fund investment account after the realisation of investments is transferred to:a)Profit and loss account,b)Debentures account,c)Sinking fund account.d)None of theseCorrect answer is option 'C'. Can you explain this answer?.
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