Question

Bhuri Limited wants to redeem its 6,000 Redeemable Preference Shares of Rs. 100 each. Rs.90 paid up at a premium of 10%; There are following balances in the books;(A) Share premium A/c Rs. 10,000(B) Bank A/c Rs. 1,00,000(C) P&L Account (Cr.) Rs. 1,00,000. How many shares of Rs. 100 each would be required to be issued at a premium of 10% by the company; so that the above mentioned pref. shares can be redeemed? *

Answer 1

Answer:

90 paid up at a premium of 10%; There are following balances in the books;(A) Share premium A/c Rs. 10,000(B) Bank A/c Rs. 1,00,000(C) P&L Account (Cr.) Rs. 1,00,000. How many shares of Rs. 100 each would be required to be issued at a premium of 10% by the company; so that the above