Question

1000 14% preferrence shares of rs100 each 20000 equity shares of rs10 each annual profit rs 190000 rs210000 rs205000 rs215000 respectively in 2010-2011 2011-2012 2012-2013 2013-2014
tax rate 25%
general reserve transfer 20% of profit
normal rate 20%​

Answer 1

Correct option is

A

Rs. 50,000

10% preference shares of Rs. 100 each

( 2,000 x 100 ) 2,00,000

Less: Equity shares of Rs. 100 each

( 1,500 x 100) 1,50,000

Capital Rdeemption Reserve Account 50,000.