Redemption of Preference Shares
Can we follow any sequence of Journal Entries since date is normally not given... like booking liability of PS Holders in first entry and paying them in Last entry ?
It is better and suggested to pass the entries in the specified order since, it won't consume extra time to check for the student and examiner whether all the entries were passed or not.
Ok thank you
Preference share capital account dr
To Preference shareholders account cr
( being booking liability )
Preference shareholders account dr
Bank account cr
( being payment to PS holder)
Terms & Conditions
CA Inter (New)
CA IPC (Old)
964-011-1110 / 913-331-0549