📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Banking company incorporated in India is required to

    create a reserve fund __________________ transfer to the reserve fund a sum equivalent to not less than twenty per cent of such profit
    A Before any dividend is declared Correct Answer Incorrect Answer
    B Out of the balance of profit of each year as disclosed in the profit and loss account prepared under section 29 Correct Answer Incorrect Answer
    C Both a & b Correct Answer Incorrect Answer
    D Either a or b Correct Answer Incorrect Answer

    Solution

    Section 17. Reserve Fund: (1) Every banking company incorporated in India shall create a reserve fund and shall, out of the balance of profit of each year as disclosed in the profit and loss account prepared under section 29 and before any dividend is declared, transfer to the reserve fund a sum equivalent to not less than twenty per cent of such profit.

    Practice Next
    More Other Laws and Acts Questions
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call