issue of shares @premium

Preference share capital A/C Dr. 100000 To equity share capitalA/C 90909 To Securities premium A/C. 9091

Shankari C

CA Inter

★ 12K+

04-Sep-22 22:02

Preference share capital A/c Dr. Rs. 1,00,000 To Preference shareholders A/c Rs. 1,00,000 Preference shareholders A/c Dr. Rs. 1,00,000 To Equity share capital A/c Rs. 90,909 To Securities Premium A/c Rs. 9,091

Peratchi Selvam

CA Final

★ 925

05-Sep-22 01:11

Actually the pref shares are being redeemed that is repayed so as we are repaying to the pref share holders their capital will be reduced so entry will be Preference share capital A/C Dr To Preference share holders As now we need to repay for pref share holders so they will become creditors so they have credit balance and as their capital is being reduced as capital has credit balance we need to debit it So we are repaying by way of issue of equity shares at premium So entry will be as we have earlier credited the pref share holders so now we are repaying them so we need to debit them So entry will be Preference share holders A/C Dr To Equity share capital To security premium As we are repaying pref share holders by issue of Equity shares so Equity share capital will be increased

Thanusha Lakshmi

CA Final

★ 3K+

05-Sep-22 03:23

Preference shares capital account .Dr 1,00,000 To equity shares capital. 90909 To securities premium account 9091

Balachandar S

CA Inter

★ 59K+

05-Sep-22 04:42