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Redemption of Preference Shares- Value of fresh issue

Hi, Redemption of Preference Shares are to be done by issue of fresh capital or free reserves or both. In question 4,why are we deducting bank balance from value of redemption to arrive at value of fresh issue; when in another question(icai), free reserves are being reduced from value of redemption to arrive at value of fresh issue?


Karan Chellani

Karan Chellani

CA Inter

0

19-Sep-20 14:05

24

Answers (5)

There are two kinds of questions - one on minimum transfer to CRR and other to keep minimum balance in bank. https://youtu.be/5WSDaC_0Qfc Aug 2020 | Revision | Redemption of Pref Shares & Debentures - CA Inter / IPCC Watch this video on youtube.


Suraj Lakhotia

Suraj Lakhotia

Admin

19-Sep-20 15:06

If the question does not specify the way, how to find out which method to be used?


Karan Chellani

Karan Chellani

CA Inter

0

20-Sep-20 15:47

Be


Karan Chellani

Karan Chellani

CA Inter

0

20-Sep-20 15:49

Be

Unless bank balance is to be maintained, treat it as a normal question.


Suraj Lakhotia

Suraj Lakhotia

Admin

21-Sep-20 16:50