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Redemption of Preference Shares
Accountancy
In Illustration 5: As Per Marked Arrow; X Ltd has to issue minimum equity share at Rs.50 (i.e., at par). I understood how the value of 37,500 derived in two Journal Entries I marked. But I have a doubt that this why they have used Share Application Account? They should use Bank A/c Dr to Equity Share Capital A/c as its Fresh Issue of Share Capital for the purpose of redemption
Answers (3)
CA Suraj Lakhotia Admin
You can pass two entries or a single entry
And By the way sir in Indigo Learn Notes this question is half printed. Ok thankyou sir :)
