Capital Redemption Reserve fund and its uses.



Capital Redemption Reserve fund and its uses...

Answer / bjanmejai

CRR Pertain to Capital Redemption Reserve fund which is created to secure the creditor & also it is mandatory to create while making the buy back of Share capital,b'coz after buy back the share capital reduce by such amount.(means the owner has paid before the liability being pay of the outsider & this give unsecurity to Creditor, that why it is mandatory to create the same with nominal value of share...)
CRR can be used for as per the Act for Instance... Issue of Bonus share,some extend to the payment of Dividend after approval from Central Government.

DRR is to be created for the payment security of Debenture only.

Is This Answer Correct ?    40 Yes 16 No

Post New Answer

More Accounting General Interview Questions

what is payment written

0 Answers   Accenture,


last year company profit is Rs 50.000 ,the part of the profit is transfer to reserve and surplus account . but the current year company suffering loss .in that situation company can take help Rs 25000 from reserve and surplus . if yes than how can ,please reply me what is general entry

3 Answers   IBM, TCS,


what is financial MIS report and what is included in it. Please help me out to know the concept

3 Answers  


My boss said to me "Calculate Tds for the month of may 2018 from bank statement". my Boss business is Proprietorship of Construction and designing work. How I can calculate Tds liability.

0 Answers  


Sir i want to ask that if the salary above 6500/- than also pf deduct.

0 Answers  






using examples, examine the relevance of the following as final accouting adjustments; 1.reserves 2.provisions 3.disposal of assets 4.control accounts

0 Answers  


Furniture is Destroyed in Fire ?? Where it will effect in Balance sheet ??

6 Answers   Focus,


How many types of Methods of Depreciation Calculation ?

5 Answers  


Which type of stock show in trail balance. Op. Stock or Cl. Stock & Why?

9 Answers  


What is the difference between Invoice and Performa Invoice ?

3 Answers  


what are accounting concepts?

2 Answers  


1) I WANT TO KNOW TDS APPLICABLE TO RENT, CONTRACTOR, SALARY, PROFESSIONALS, TRANSPORT ETC 2) WHAT IS PPF . WHAT ARE THE BENEFITS IF A PERSON INVEST IN PPF. WHAT IS THE RATE OF INTREST AT PRSENT. WHAT IS THE PROCUDURE OF PPF. 3 ) WHAT IS INFLATION ? HOW GOVT CONTROLS INFLATION WHAT ARE THE RESERVE BANK ' RESTRICTIONS ON CONTROLING INFLATION 4) UP TO WHAT AMOUNT TDS IS APPLICABLE . PL SEND US CHART OF TDS APPLICABLE FOR ALL ALLIED SERVICES

1 Answers  


Categories