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Direction: Choose the correct answer to the following questions from the given alternatives:
Profit on sale of debenture redemption fund investments in the first instance is credited to:
- a)Debenture redemption fund account,
- b)Profit and loss appropriation account,
- c)General reserve account.
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from t...
Explanation:
Profit on sale of debenture redemption fund investments in the first instance is credited to the Debenture Redemption Fund Account. Here's why:
Debenture Redemption Fund Account:
- The purpose of the Debenture Redemption Fund is to ensure that funds are available to redeem debentures when they mature.
- Any profit made on the sale of investments held in the Debenture Redemption Fund is credited back to this account.
- This ensures that the funds remain available for their intended purpose of debenture redemption.
Therefore, the correct answer is option 'A' - Debenture redemption fund account.
Profit on sale of debenture redemption fund investments in the first instance is credited to the Debenture Redemption Fund Account. Here's why:
Debenture Redemption Fund Account:
- The purpose of the Debenture Redemption Fund is to ensure that funds are available to redeem debentures when they mature.
- Any profit made on the sale of investments held in the Debenture Redemption Fund is credited back to this account.
- This ensures that the funds remain available for their intended purpose of debenture redemption.
Therefore, the correct answer is option 'A' - Debenture redemption fund account.
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Direction: Choose the correct answer to the following questions from t...
- Debenture Redemption Fund Account: Profit on sale of debenture redemption fund investments in the first instance is credited to the Debenture Redemption Fund Account. This is because the purpose of the Debenture Redemption Fund is to ensure that there are enough funds available to redeem the debentures at maturity. Therefore, any profits made from the investments held in this fund are credited back to the fund itself.
- Profit and Loss Appropriation Account: The Profit and Loss Appropriation Account is used to allocate profits among various accounts such as reserves, dividends, etc. It is not directly related to the Debenture Redemption Fund investments.
- General Reserve Account: The General Reserve Account is used to set aside funds for general business purposes and is not specifically linked to the Debenture Redemption Fund investments.
- None of these: This option is incorrect as the profit on the sale of debenture redemption fund investments is credited to the Debenture Redemption Fund Account in the first instance.
Therefore, the correct answer is option A: Debenture Redemption Fund Account.
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Direction: Choose the correct answer to the following questions from the given alternatives:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from the given alternatives:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. 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:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. 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:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. Can you explain this answer?.
Direction: Choose the correct answer to the following questions from the given alternatives:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. 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:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. 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:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. Can you explain this answer?.
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Direction: Choose the correct answer to the following questions from the given alternatives:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Direction: Choose the correct answer to the following questions from the given alternatives:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Direction: Choose the correct answer to the following questions from the given alternatives:Profit on sale of debenture redemption fund investments in the first instance is credited to:a)Debenture redemption fund account,b)Profit and loss appropriation account,c)General reserve account.d)None of theseCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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