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Sir , I have listened the Class Redemption of preference shares But I am Not sure Regarding Why sometimes we are dividing Fresh proceeds with issue price. How can we divide the issue price to redeem the preference shares including premium . As it is contravention to sec 55. Sir , I also watched the video in youtube but I didn't understand the logic behind it. Sir could you please do a video on this specific point. that clears the Doubt of whole chapter
Answers (1)
The video on youtube is specific to this doubt. There are two ways to determine number of shares to be issued. First case - when we have sufficient bank balance. In this face value is relevant. Second case - when we do not have suffcient bank balance. In this case we need to check both face value and face value + premium. The transfer to CRR will be based on face value. It is not a contravention to S.55