CA Inter P2 · Chapter 5 · Question 2 of 10
Harbour Ltd accepts deposits from its members under section 73(2). Its deposits maturing during the next financial year total ₹2.5 crore. By 30 April, what is the minimum amount it must place in a deposit repayment reserve account?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) ₹50 lakh
Explanation
Section 73(2)(c) requires a company accepting deposits from members to deposit, on or before 30 April each year, at least twenty per cent of the deposits maturing during the following financial year. The money is kept in a separate account with a scheduled bank called the deposit repayment reserve account. 20% x ₹2.5 crore = ₹50 lakh.
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