Accountancy, asked by nishantturakhia, 5 hours ago

company has issued 50000 redeemable preference shares of Rs 10 each, Rs 8 per share paid.in order to redeem these shares, the company issued for cash 30000 equity shares of Rs 10 each at a premium of Rs 2 per share. out of the cash proceeds, the redeemable preference shares were paid and the balance was met out of the reserve fund which stood at Rs 250000. show journal entries in the books of the company.​

Answers

Answered by prajwalkatamalli
0

Answer:

(a) At first, calculate the amount paid to the preference shareholders (without premium), i.e., Capital sum/Principal amount. (b) Deduct the amount taken from General Reserve/Profit & Loss Account for Capital Redemption Reserve Account. (c) Balance left should be the required funds to be met from fresh issue at par.

Answered by angelryan639
0

Answer:

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