IndigoLearn

Forums

Back

Redemption of preference shares

Accountancy

Premium on redemption of preference shares is provided out of p&l a/c So when we issue equity shares or use both distributed divisible profits and issue new equity shares to redeem preference shares, should we consider premium on redemption while calculating the amount to be raised by equity shares??

Dharshini Sankar

CA Inter

★ 7K+

17-Jul-22 23:12

414

Answers (3)

And also pls explain the reason why are we considering premium on redemption of preference shares while calculating equity shares to be issued in illustration no 5 from pg 13 to 16.

Attachments

66499bos53751-cp7-Copy (1).pdf

Thread Starter

Dharshini Sankar

CA Inter

★ 7K+

17-Jul-22 23:47

This issue has been covered in detail in video No 8. Topic - FV vs. Issue price usage in computing No. of shares & CRR*

CA Suraj Lakhotia

Admin

18-Jul-22 14:29

CA Suraj Lakhotia Admin

This issue has been covered in detail in video No 8. Topic - FV vs. Issue price usage in computing No. of shares & CRR*

Thank you sir. After watching the video twice I got my answer.

Thread Starter

Dharshini Sankar

CA Inter

★ 7K+

18-Jul-22 15:45