alleryStart learning →Preference shares of Rs 5,00,000 are redeemed at par wholly from profits. Transfer to CRR is:
ARs 1,00,000
BRs 50,000
CRs 5,00,000
DRs 2,50,000
Answer & Solution
Correct answer: C. Rs 5,00,000
A sum equal to the nominal amount redeemed out of profits must go to the Capital Redemption Reserve.
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