Q. As per the rules framed under the companies Act, 1956, if the dividend proposed by a company is 12% of the paid up capital, the amount to be transferred to reserve must not beless than (Solved)

1. 5% of current year profit

2. 7.5% of the current year profit

3. 10% of the current year profit

4. 2.5% of the current year profit.

  • d. 2.5% of the current year profit.
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