When there is profit on cancellation of debentures, the amount of profit is transferred to __________.

CS Executive · Corporate and Management Accounting · PYQS · June 2022
When there is profit on cancellation of debentures, the amount of profit is transferred to __________.
(A) General Reserve Account
(B) Capital Reserve Account
(C) Securities Premium Account
(D) Profit and Loss Account

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Corporate Accounting

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