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Redemption of preference shares

On redeeming preferences by using Divisible profit we cannot use capital reserve because we can use them for distributing divided, am I right sir


SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

290

19-Nov-20 10:19

12

Answers (3)

Because we cannot use them for distributing divided*


SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

290

19-Nov-20 10:24

We cannot use capital reserve to distribute dividends (in most of cases)


Suraj Lakhotia

Suraj Lakhotia

Admin

19-Nov-20 10:47

Thank you sir


SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

290

19-Nov-20 11:05