sinknig fund
This query is : Open
11 September 2010
is sinking fund A/c & debebenture Redemption Reserve are same?
11 September 2010
No. They are both different. Sinking fund, usually created in accordance with the Co-operative Societies Act. Under the State's Co-operative Societies Act, depreciation is not provided on building, instead, in its place, members have to contribute, periodically, an amount, to the Sinking Fund, to provide for repairs and renewals of the building, in accordance with its bye-laws.
Debenture redemption reserve is created under the Companies Act. Every year, proportionate amount is transferred out of the profits, to provide for the redemption of debenture.
Both are statutorily required to be created.
Sincerely,
Nilesh Shah
Debenture redemption reserve is created under the Companies Act. Every year, proportionate amount is transferred out of the profits, to provide for the redemption of debenture.
Both are statutorily required to be created.
Sincerely,
Nilesh Shah
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- NRI starting business in India
- Difference between Date of Payment and Date of Deduction?
- Journal entry of busniess expenses
- GST not cancelled by tenant
- FORM 141 SDV query
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- Cash balance limit and property purchases limit
- Taxable or Tax exempt
- How to pay remaining amount of TDS after due date?
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
