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Redemption of Debentures
Accountancy
While calculating premium on redemption, equity shares which were converted ie. 15000 shares are also included? Why?
Answers (6)
Bachina Vignesh
Because those debentures which are available to convert are also getting redeemed, and the premium is on redemption, so while calcuting the equity shares to be issued it need to consider with premium..
Which means firstly they are redeemed and then converted into shares right? ð???
Thread Starter
Bumble BeeWhich means firstly they are redeemed and then converted into shares right? ð???
It seems the same like that...
Bachina Vignesh
It seems the same like that...
How general redemption takes place, but for money company issuing share of same worth..
Means.., When redemption at premium % Debentures A/c Dr Premium on Redemption A/c Dr To Debenture holders A/c By convention Debenture holders A/c Dr To Equity share capital A/c To Securities premium A/c By this you can clearly understand that The amount which is payable to debenture holders is issued as shares.., so that the value of share is included with premium on redemption