When Sinking fund investment has own debentures purchased at a price less than Face Value and subsequently the debentures are cancelled, to which account is the profit on cancellation transferred ? Capital reserve or sinking fund account ?
Rocky ( ) (85 Points)
31 March 2016When Sinking fund investment has own debentures purchased at a price less than Face Value and subsequently the debentures are cancelled, to which account is the profit on cancellation transferred ? Capital reserve or sinking fund account ?
praveena sharma
(student)
(22 Points)
Replied 31 October 2020
You should transfer it to the sinking fund account.