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Redemption of preference shares
Accountancy
Here in the solution to find no. Of shares 71500 being 65000 + 10% the amount payable on redemption is taken but not in the case of similar model questions why.??
Answers (20)
Jitendra Kumar
https://youtu.be/UczkS6ndbqs
I was asking that we can take 65000 just like other problem but why did we take 71500 in this specific problem
CA Suraj Lakhotia Admin
Try with 65000 and see what happens
Sir Iam getting 31000 for funds from fresh issue
CA Suraj Lakhotia Admin
Solve completely and share here
I got like this sir...in both cases balance sheet is getting tallied.
Paras Doshi
Because we are required to have bank balance of 12k at the end of the redemption so we are doing like this
Ohh if there is no condition like that we need not consider the premium amount.
Thread Starter
Anirudh guptaI got like this sir...in both cases balance sheet is getting tallied.
But then you actually have to pay 65000 + 6500 to preference shareholders right. How will the bank balance be 12,000 in that case?
CA Suraj Lakhotia Admin
But then you actually have to pay 65000 + 6500 to preference shareholders right. How will the bank balance be 12,000 in that case?
π π π Yes sir got it thank you...it means a lot
CA Suraj Lakhotia Admin
For exams - If min bank balance is needed first check using amount needed and then CRR based on FV
Ok sir thank you so muchππ
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