Closing balance of depreciation fund is transferred to which of the following account

The correct answer is: A. General reserve.

A general reserve is a reserve that is not specifically designated for any particular purpose. It is usually used to meet unexpected expenses or to provide a cushion against losses.

A capital reserve is a reserve that is created from the proceeds of a capital issue. It is usually used to finance capital expenditure or to provide a cushion against losses.

An asset account is an account that records the value of an asset.

A capital redemption reserve account is an account that records the amount of money that is set aside to redeem a company’s capital.

Here is a brief explanation of each option:

• General reserve: A general reserve is a reserve that is not specifically designated for any particular purpose. It is usually used to meet unexpected expenses or to provide a cushion against losses.
• Capital reserve: A capital reserve is a reserve that is created from the proceeds of a capital issue. It is usually used to finance capital expenditure or to provide a cushion against losses.
• Asset account: An asset account is an account that records the value of an asset.
• Capital redemption reserve account: A capital redemption reserve account is an account that records the amount of money that is set aside to redeem a company’s capital.