alleryStart learning →8,000 shares of Rs 10 bought back at Rs 25 entirely from general reserve. The fall in general reserve is
ARs 1,20,000
BRs 2,80,000
CRs 80,000
DRs 2,00,000
Answer & Solution
Correct answer: D. Rs 2,00,000
Premium of Rs 1,20,000 is charged to reserve and Rs 80,000 moves to capital redemption reserve, a total fall of Rs 2,00,000.
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