Accounting · Capital Redemption Reserve
What is/are the main reason(s) for creating a Capital Redemption Reserve (CRR) during the redemption of preference shares?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1None of the above
- 2Both A and B✓
- 3To safeguard the interests of the company's creditors
- 4To maintain the capital intact
Correct answer
Both A and B
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