Question

deepika Ltd. has 10000 7.5% preference shares of ₹10 each.the company had forfeited 500 preference shares on which final call of ₹2 had not been received.remaining shares were redeemed at par out of reserves. the amount credited to capital redemption reserve is​

Answer 1

Answer:

Explanation:

Light Ltd. has 10,000 5% preference shares of Rs. 10 each to be redeemed after 5 years. The company forfeited 500 preference shares on which final call of Rs 2 has not been received after due notice, and cancelled these shares on account of redemption. Remaining shares were redeemed out of reserves of the company. The amount to be credited to capital redemption reserve will be

a)Rs.1,00,000

b)Rs. 95,000

c)Rs. 99,000

d)Rs. 99,500

Correct answer is option 'A'. Can you explain this answer?

 

Freedom Institute

Jul 12

-

The amount to be credited to capital redemption reserve will be  

Rs.1,00,000

-A statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares.

Answer 2

Answer:

I hope you will get it....

Explanation:

The amount to be credited to capital redemption reserve will be Rs. 1,00,000- A Statutory, non- distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares.