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In redemption of preference shares, when we redeem it by using the divisible profit for using that why dont we pass any entry by debiting the p&l account but we dr. The p&l account for transfering it to CRR? Pls clarify where do i misunderstood the concept..
Answers (6)
CA Suraj Lakhotia Admin
Your query is not quite clear.
Sir when we take out divisible profit for redeeming preference shares why dont we show such effect ie., reduction in profit any where .?
CA Suraj Lakhotia Admin
If you are using PL balance, you will reduce it from balance sheet. It doesnt come in PL account.
What we do reduce it from balance sheet
Thread Starter
Sri kanaga VarshiniSir when we take out divisible profit for redeeming preference shares why dont we show such effect ie., reduction in profit any where .?
https://www.youtube.com/watch?v=5WSDaC_0Qfc Please check this video once @4.33 onwards. Feel free to ping here, if any doubt remains.
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