Question:medium
Balance of Debenture Redemption Reserve is transferred to which account after the redemption of all debentures?
Balance of Debenture Redemption Reserve is transferred to which account after the redemption of all debentures?
Show Hint
After redemption of debentures, DRR balance is transferred to General Reserve.
Updated On: Jan 14, 2026
- Profit and Loss Account
- Capital Reserve Account
- General Reserve Account
- Statement of Profit and Loss
Show Solution
The Correct Option is C
Solution and Explanation
The Debenture Redemption Reserve (DRR) is a statutory reserve mandated by the Companies Act for the redemption of debentures. Upon the complete redemption of all debentures, the DRR's objective is met. In accordance with accounting practices, any residual DRR balance is then transferred to the General Reserve Account, as the General Reserve is a free reserve available for the company's general use.
Was this answer helpful?
0
Top Questions on Debentures
- A company took a loan of ₹10,00,000 at 12% p.a. and offered ₹15,00,000 in 8% Debentures as collateral security. Calculate the finance cost for the year.
- ICSE Class XII - 2026
- Accountancy
- Debentures
- G.S. Rai company ltd. purchased assets of the book value of Rs. 98,000 from another firm. It was agreed that purchase consideration be paid by issuing 11% debentures of Rs. 100 each. Assume debentures have been issued at discount of 20%. Identify the number of debentures issued by the company to the vendor:
- CUET (UG) - 2025
- Accountancy
- Debentures
- When Debentures are issued at par and are redeemable at a premium, the Loss on such an issue is debited to:
- CUET (UG) - 2025
- Accountancy
- Debentures
- If a company issues Rs. 1,00,000, 9% debentures of Rs. 100 each at a discount of 5% but redeemable at a premium of 5%, then what amount will be debited to Loss on Issue of Debentures Account?
- CUET (UG) - 2025
- Accountancy
- Debentures
- Want to practice more? Try solving extra ecology questions todayView All Questions
