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Redemption of preference shares

Accountancy

Sir, I did not understand the CRR entry 1) how 33750? 2) And when the redemption is financed from Sale of investments + Utlizing bank balance + Minimum fresh issue of equity shares We credit to CRR only the amount taken out of free reserves right !! But in this case we did not take any amount from free reserves for redemption, then why did we credit 33750 to CRR ? Please explain

Bliss Full

Bliss Full

CA Inter

★ 580

13-Oct-21 11:39

224

Answers (5)

In the solution part i.e 65000(face value of redemption)-37500(fresh issue of shares)=27500 crr amt but not 33750

Lakki Kamu

Lakki Kamu

CA Final

★ 4K+

13-Oct-21 21:05

ICAI has incorrectly computed

CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

14-Oct-21 10:34

Sir, will CRR entry be there? If yes with what amount?

Thread Starter

Bliss Full

Bliss Full

CA Inter

★ 580

14-Oct-21 13:22

In excess of face value of fresh issue, it would be transferred to CRR

CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

14-Oct-21 14:15

Thank you sir

Thread Starter

Bliss Full

Bliss Full

CA Inter

★ 580

14-Oct-21 15:29

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