Where is lsquo Debenture Redemption Reserve rsquo transferred after the redemption of all debentures...........

General Accounting Principles Accounting For Debentures

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Where is ‘Debenture Redemption Reserve’ transferred after the redemption of all debentures?

Capital Reserve Account

General Reserve Account

Statement of Profit and Loss

Sinking Fund Account

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Explanation:

Till Redemption is done, the DRR should be kept so that it can be utilized for redeeming the Debenture. However, if the firm manages to redeem it without utilizing DRR, the purpose of DRR gets fulfilled and is no more useful. So, at the end it is transferred to General Reserve so that it can be used for other purposes