Question

25. The Balance Sheet of M/s RAMAN Ltd. as at 31st December 2018, inter alia includes the
Share Capital : 50,000 8% preference shares of 100 each, 70 paid up 35,00,000,
Account 5,00,000 ; Capital Redemption Reserve * 25,00,000 ; General Reserve
1,00,000 equity shares of 100 each, fully paid up 1,00,00,000 ; Securities Premium
following:
45,00,000.
The Board decided to redeem the entire preference share capital at a premium of 5% on 31-
5.2019. In order to finance the redemption, the company makes a right issue of 50,000
including premium) on allotment and the balance on January 1, 2020. The issue was fully
subscribed and allotment made on March 1, 2019. The monies due on allotment were
received by March 30, 2019.
The preference shares were redeemed after fulfilling the necessary conditions of Section 55
of the Companies Act, 2013. The Company decided to make the minimum utilisation of
general reserve.
Show Journal Entries in the books of the Company for the above transactions.​

Answer 1

Answer:

M/s Raman

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