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Redemption of preference shares ( crr requirement)

Accountancy

Sir, in this example we have have to issue 2500 ( face value of rs 10 and premium of rs 10) shares for crr requirement but we have a shortfall of 5000 fund so we issue 2750 shares ( face value of rs 10 and premium of rs 10). Can we issue 2500 shares ( ( face value of rs 10 and premium of rs 12) sir my doubt is instead of increasing number of shares for fund requirement can we just increase premium of rs 2 since crr requirement is already satisfied? Video no. 8 of redemption of preference shares chapter

Balamurugan V

CA Final

★ 52K+

03-Nov-21 19:14

395

Answers (2)

Best Answer

Yes. That can also be done. But generally in exam issue price would be given and hence this example is given accordingly.

CA Suraj Lakhotia

Admin

09-Nov-21 14:41

CA Suraj Lakhotia Admin

Yes. That can also be done. But generally in exam issue price would be given and hence this example is given accordingly.

Thank you sir

Thread Starter

Balamurugan V

CA Final

★ 52K+

09-Nov-21 14:43