Question

Preference shares amounting to Rs 3,00,000 are redeemed at a premium of 5% by issue of equity shares amounting to Rs 2,00,000 at a premium of 3%. The amount to be transferred to Capital Redemption Reserve: (a) Rs 1,00,000 (b) Rs 1,20,000 (c) Rs 2,10,000 (d) None

Answer 1

Preference shares amounting to Rs 3,00,000 are redeemed at a premium of 5% by issue of equity shares amounting to Rs 2,00,000 at a premium of 3%. The amount to be transferred to Capital Redemption Reserve Rs. 2,10,000.

So, the answer is :-

[C] Rs. 2,10,000 ✓✓

Answer 2

Hello Friend

Option.C

Thank you