Question

A reserve account that shall not be used by the company for any purpose other than repayment of deposits is called_____.

A Free reserve Correct Answer Incorrect Answer
B Deposit Repayment Reserve Account Correct Answer Incorrect Answer
C Capital Redemption Reserve Account Correct Answer Incorrect Answer
D Debenture Redemption Reserve Account Correct Answer Incorrect Answer

Solution

According to Section 73(2) (c) of the Companies Act, 2013, depositing such sum which shall not be less than 15% of the amount of its deposits maturing during a financial year and the financial year next following, and kept in a scheduled bank in a separate bank account to be called as deposit repayment reserve account.

Practice Next
×
×