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In question 1.1 ,shouldn't the amount transferred to Crr be 500k because that's the nominal value of share.
Answers (14)
Best Answer
Thread Starter
pradyumna hariramaniPls someone tell
See in the question they clearly said preference shares are issued for the purpose of buyback in balnace sheet
Likhitha Sivani
See In the question they clearly said that preference shares issued for the purpose of buyback only. That means 200Lakhs are used form the issue of fresh shares. Only 300lakhs is used from the divisible profits
But here we have not issued preference share ,we have sold investments that too at 22 lakhs
Thread Starter
pradyumna hariramaniPls someone tell
If u have any doubts except in CFS and AS u can ask i will clarify till 1:30
Likhitha Sivani
That's y 300lakhs transferred to CRR. Understand?
3 lakhs is transferred to crr because we have used Co.s money and now we have to take some portion from reserves and transfer to crr right?
Thread Starter
pradyumna hariramani3 lakhs is transferred to crr because we have used Co.s money and now we have to take some portion from reserves and transfer to crr right?
Yes right. By the way it will be say like divisible profits available to share holders not comapnys money
Thread Starter
pradyumna hariramani3 lakhs is transferred to crr because we have used Co.s money and now we have to take some portion from reserves and transfer to crr right?
You have paid back shareholders. So an amount of distributable profit is blocked to protect interest of creditors.
