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Redemption of preference shares
Accountancy
the following or extract from the balance sheet of ABC Ltd as on 31/12/20x1 Share capital 50,000 equity share capital of Rs.10, each fully paid up Rs.5,00,000 2000 10% redeemable preference shares of Rs.100 each fully paid up Rs.2,00,000 Reserves and surplus capital reserve Rs.2 lakhs general reserve Rs.2 lakhs profit and loss account Rs.75,000 On 1/01/20X2 the board of directors decided to redeem the preference shares at premium of 5% by utilisation of reserves You are required to prepare necessary journal entries, including cash transaction in the books of the Company Answer please
Answers (6)
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Thread Starter
Siva subramaniam MIs this answer correct sir .
CRR should be 2 lacs And you should trf the premium on redemption to P&L
Thread Starter
Siva subramaniam MIs this answer correct sir .
Your entire answer is wrong starting from the % you mentioned for redemption of prefence share a/c to crr amt everything is wrong.. Sadly icai won't appreciate it..
CA Suraj Lakhotia Admin
CRR should be 2 lacs And you should trf the premium on redemption to P&L
Sir, CRR is to be made on fresh issues.. But there ain't any.. So how come you have taken the amt as 2lakhs.. Please guide..
CA Suraj Lakhotia Admin
CRR should be 2 lacs And you should trf the premium on redemption to P&L
Sorry.. I got it.. Thank you for helping us out sir!!..
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