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Redemption of preference shares

Accountancy

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

★ 1K+

19-Nov-20 10:19

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Answers (3)

Because we cannot use them for distributing divided*

Thread Starter

SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

★ 1K+

19-Nov-20 10:24

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

CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

19-Nov-20 10:47

Thank you sir

Thread Starter

SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

★ 1K+

19-Nov-20 11:05

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