Match the following. List-I List-II a. Expenses of scheme 1. Not transferable to capital reduction b. Statutory reserve 2. Indicate and reduced c. Balance sheet after reduction 3. Transfer difference to capital reserve d. Reduction in paid-up value of shares 4. Debit capital reduction account

a-4, b-3, c-2, d-1
a-2, b-4, c-1, d-3
a-4, b-2, c-1, d-3
a-4, b-1, c-2, d-3

The correct answer is: C. a-4, b-2, c-1, d-3

List-I | List-II
——- | ——–
a. Expenses of scheme | Debit capital reduction account
b. Statutory reserve | Not transferable to capital reduction
c. Balance sheet after reduction | Indicate and reduced
d. Reduction in paid-up value of shares | Transfer difference to capital reserve

Explanation:

a. Expenses of scheme are debited to capital reduction account.
b. Statutory reserve is not transferable to capital reduction.
c. Balance sheet after reduction should indicate the reduction in paid-up value of shares.
d. The difference between the amount of the reduction and the amount of the expenses of the scheme is transferred to capital reserve.

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