Redemption of preference share

Accountancy

Please provide conclusion regarding When we have to pass entry for crr in which situations And is there any exemptions And l have conclusion that when are we issuing fresh issue we don't to need pass crr if the fresh issue is sufficient for redemption And when using divisible profits then to pass crr entry Please give a clarification

Lakki Kamu

CA Final

★ 4K+

08-Oct-21 11:25

567

Answers (1)

There is 3 ways for redemption of preference 1.From fresh issue or 2. From free reserve 3.From both the above 1 and 2 When you use the free reserve for redemption of preference share, you need to transfer The Nominal value of the share (redemption shares ) to the CRR account.

Kumar G

CA Final

★ 12K+

08-Oct-21 12:50