A company had, as part of its share capital 1,000 redeemable preference shares of Rs.100
each fully paid up. When the shares became due for redemption, the company had
Rs.60,000 in its reserve fund. The company made minimum new issue of equity shares of
Rs.25 each necessary for the purpose of redemption and received cash in full. Make the
necessary journal entries recording the above transactions.
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Explanation:
Rise Ltd had issued 40,000, 8% debentures of Rs. 100 each redeemable
on 31st march 2015. It was decided to invest 15% of the face value of
debentures to be redeemed towards debenture redemption investment on
30th april 2014. Investments were encashed and debentures were
redeemed on due date. Record necessary journal entries for redemption of
debentures
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