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A reserve account established for the sole purpose of repayment of company deposits is called:
Answer & Solution
Correct answer: A.
1. Rule 13 of the Deposit Rules requires a 'Deposit Repayment Reserve Account' to be maintained in a scheduled bank.
2. It is earmarked solely for the repayment of deposits.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Acceptance of Deposits_