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Buy back
Accountancy
Study material question no 3 Company passed a resultion to buy back 20% of its equity capital @50 per share 250000 equity share @10 each fully paid up 2500000 How much transfer to CRR
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Best Answer
I assume you're talking about illustration 3? See the preference share capital. Its been issue for the purpose of buyback CRR is not required for that part of the buyback financed by issue of preference shares Thus, crr required here is (50,000 × 10) - (2,000×100) = 3,00,000
