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      Question

      Capital Reserve can be utilized

      for:
      A Payment of dividend Correct Answer Incorrect Answer
      B Writing off capital losses Correct Answer Incorrect Answer
      C Issue of bonus shares Correct Answer Incorrect Answer
      D Payment of bonus to employees Correct Answer Incorrect Answer

      Solution

      Capital Reserve, arising from capital profits (like premium on issue of shares, profit on sale of fixed assets), can be used for writing off capital losses.

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