Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › Which of these may be used to pay dividends?
Which of these may be used to pay dividends?
AA general reserve
BProvision for tax
CProvision for bad debts
DProvision for repairs
Answer & Solution
Correct answer: A. A general reserve
A general reserve is freely usable, so dividends can be paid out of it, but a provision cannot be.
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