A reserve account that shall not be used by the company

Q: Answer-A reserve account that shall not be used by the company for any purpose other than repayment of depo...

According to Section 732 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.

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.

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CBI APP and PP

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