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Why DRR is transferred to general …

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Why DRR is transferred to general reserve?

Posted by Akash Ranjan 8 years, 4 months ago

CBSE > Class 12 > Accountancy

1 answers

Kritika Trehan 8 years, 4 months ago

DRR is created out of profits of the company & is debited to the statement of P&L(which means profit is reduced). now at the time of redemption of debentures, DRR is transferred to general reserve to give effect to the earlier reduction in profit.

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