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Redemption of Preference Shares

Accountancy

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 ?

J J

CA Final

★ 180

17-Aug-20 16:42

546

Answers (3)

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.

Lavanya Chitturi

CA Inter

★ 895

18-Aug-20 13:04

Lavanya Chitturi

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

Thread Starter

J J

CA Final

★ 180

18-Aug-20 13:05

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)

Dinesh Ravichandran

CMA Final

★ 6K+

19-Aug-20 21:11