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Redemption of preference shares.

Accountancy

Illustration 2 to find out number of shares ,when shares issued with premium u divided only by face value.. Bt in illustration 4 went shares r issued @ 50 and 10 premium.. We SD divide by 50 right sir.. Y u divided by 6.

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Shruthi V

CA Inter

★ 0

21-Feb-20 20:05

456

Answers (1)

First is a case where you want to ensure that there is no transfer to CRR. Second is a case where you want to know how many shares are to be issued so that enough money is raised for redemption.