When the proposed dividend is more than 20 %, an amount equal to ‐‐‐‐‐‐‐‐‐‐‐ of the current profits must be transferred to reserve.

Related MCQs

• If rate of proposed dividend is less than 10% of paid up capital, the rate of profit transferred to Reserve shall be………..
• When the proposed dividend exceeds 20% of paid up capital, percentage of profit transferred to general reserve is…..
• When debentures are redeemed out of profits, an amount equal is transferred to…..
• When debentures are redeemed from out of profits an equal amount is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐ account.
• Revenue reserve means any reserve other than ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ reserve.
• If the actual profits are more than the expected normal profits, the difference is termed as ‐‐‐‐‐‐‐
• When 4,000 equity shares of Rs.10 each is bought back at Rs.20 per share, the amount to be transferred to Capital Redemption Reserve is
• In the calculation of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐, past profits will have to be adjusted, in order to dertemine the future expected profits.
• In case of ……………..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years.
• In case of redemption out f profit, an amount equal to face value of shares so redeemed should be transferred to …………