Multiple Choice Questions on If equity shares have been bought back out of reserves amount equal to the face value of equity shar........... for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

If equity shares have been bought back out of reserves amount equal to the face value of equity shar...........

Accountancy (Phase -I & II) Employee Stock Option and Buy back of Securities
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    If equity shares have been bought back out of reserves amount equal to the face value of equity shares bought back should be transferred to

    Development rebate reserves

    Incorrect Answer

    General reserves

    Incorrect Answer

    Sinking fund 

    Incorrect Answer

    Capital Redemption 

    Correct Answer
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    Explanation:

    If the Buyback is made out of Free Reserves, then an amount equal to the Nominal Value of shares bought back must be to be transferred to the CRR (Capital Redemption Reserve ) A/c

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