Question

6671 :
Balance Sheet of ABC Limited as at 31.03.2020 disclosed 30,000 6% Preference Shares
of Rs.10 each. The Preference Dividend was in arrears for three years. The preference
shareholders agreed to waive 50% of the of the claim . Which of the of the following
is correct treatment?
O Capital Reduction to be debited by Rs.18,000
o Capital Reduction to be debited by Rs.27,000
o Capital Reduction to be debited by Rs.54,000
O Capital Reduction to be debited by Rs.30000​

Answer 1

Answer:

6671 :

Balance Sheet of ABC Limited as at 31.03.2020 disclosed 30,000 6% Preference Shares

of Rs.10 each. The Preference Dividend was in arrears for three years. The preference

shareholders agreed to waive 50% of the of the claim . Which of the of the following

is correct treatment?

O Capital Reduction to be debited by Rs.18,000

o Capital Reduction to be debited by Rs.27,000

o Capital Reduction to be debited by Rs.54,000

O Capital Reduction to be debited by Rs.30000