Question

company had issued 10,000 12% preference shares of 3 10 each which were due for redemption on Ist April, 2019, at a premium of +1 per share. The directors decided to use for the redemption 50,000 from general reserve account, * 30,000 from the surplus account, and to provide the balance required, by the issue of equity shares of * 10 each at par, payable in full on application. Show by means of journal entries how the necessary records would be made in the books in respect of the above. 8. The following is an extract from the balance sheet of ARP Ltd. as on 31st March, 2019: 6,400 12% preference shares of * 100 each fully paid 6,40,000 10,000 equity shares of 100 each fully paid 10,00,000 Securities premium account 50,000 Revenue reserve 5,00.000 It was decided to redeem the preference shares on 30th June, 2019 at a premium of 10 per cent The company issued for cash so many equity shares of 100 each as were necessary to provide for redemption of preference shares. The issue was fully subscribed and all the money were received. You are required to give the journal entries in the books of ARP Ltd. The following is an extract from the balance sheet of HR Id as on 31st Muh​

Answer 1

Answer:

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