Money from _____ account is used for redemption of debentures.
Q.1 (A) (iv) Money from _____ account is used for redemption of debentures.
A. Capital
B. Debenture Redemption Reserve
C. Profit or loss
1 answer
Best answer
Answer: B. Debenture Redemption Reserve
Answer: (b) Debenture Redemption Reserve — Money from Debenture Redemption Reserve account is used for redemption of debentures.
Under Section 71(4) of the Companies Act, 2013, a company issuing debentures (where applicable) has to create a Debenture Redemption Reserve out of its profits available for dividend. The amount credited to this reserve is to be used only for redemption of debentures.
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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