{"id":53229,"date":"2024-04-15T23:50:58","date_gmt":"2024-04-15T23:50:58","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=53229"},"modified":"2024-04-15T23:50:58","modified_gmt":"2024-04-15T23:50:58","slug":"when-investment-in-private-debentures-is-cancelled-then-this-profit-loss-is-credited-debited-to","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/when-investment-in-private-debentures-is-cancelled-then-this-profit-loss-is-credited-debited-to\/","title":{"rendered":"When investment in private debentures is cancelled then this profit\/loss is credited\/ debited to"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9750eacf592\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Debenture Redemption fund A\/c                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    General reserve A\/c                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Capital reserve A\/c                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Any of the above A\/c                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. Capital reserve A\/c<\/strong><\/p>\n<p>When investment in private debentures is cancelled, the profit or loss is credited or debited to the capital reserve account. This is because the capital reserve account is a reserve account that is used to record gains <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> or losses on the disposal of capital assets.<\/p>\n<p>The other options are incorrect because they are not reserve accounts. The debenture redemption fund account is a fund that is used to repay debentures. The general reserve account is a reserve account that is used to record general gains or losses. The profit and loss account is a statement of financial performance that records all of the revenues and expenses of a company for a period of time.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li><strong>A. Debenture Redemption Fund A\/c<\/strong><\/li>\n<\/ul>\n<p>The debenture redemption fund account is a fund that is used to repay debentures. Debentures are loans that a company raises from investors. The debenture redemption fund account is a sinking fund that is used to accumulate money to repay the debentures when they mature.<\/p>\n<ul>\n<li><strong>B. General reserve A\/c<\/strong><\/li>\n<\/ul>\n<p>The general reserve account is a reserve account that is used to record general gains or losses. Reserve accounts are accounts that are used to accumulate money for specific purposes. The general reserve account is a general purpose reserve account that can be used for any purpose.<\/p>\n<ul>\n<li><strong>C. Capital reserve A\/c<\/strong><\/li>\n<\/ul>\n<p>The capital reserve account is a reserve account that is used to record gains or losses on the disposal of capital assets. Capital assets are assets that are used in the business for more than one year. The capital reserve account is used to record gains or losses on the disposal of these assets.<\/p>\n<ul>\n<li><strong>D. Any of the above A\/c<\/strong><\/li>\n<\/ul>\n<p>The answer is not D, because the profit or loss on the cancellation of investment in private debentures must be credited or debited to the capital reserve account.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>When investment in private debentures is cancelled then this profit\/loss is credited\/ debited to<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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