Redemption of preference shares

Accountancy

Sir, we are complying sec 133 by passing the entry .. Sometimes we can pay from the bank which was received from fresh issue security premium . Is it contravention know sir ?

M Naresh

CA Final

★ 3K+

19-Jun-21 18:39

579

Answers (1)

Payment will be through bank in all cases. Bank is an asset that is represented by some liabilities or equity. Either you use bank balance to the extent of free reserves or raise fresh capital.

CA Suraj Lakhotia

Admin

19-Jun-21 19:48