The Sinking Fund (also known as Debenture Redemption Fund) is created out of profits for redemption of debentures. Once the debentures are fully redeemed, the balance in the fund is no longer required for a specific purpose and is transferred to General Reserve, becoming available as a free reserve.
After the debentures are redeemed, the balance in the Sinking Fund Account is transferred to:
CUET UG 2022 — Accountancy Company Accounts
2022mcqmedium
After the debentures are redeemed, the balance in the Sinking Fund Account is transferred to:
Official previous-year question
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Options
- A
capital reserve
- B
general reserve
- C
profit and loss account
- D
secret reserve
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