Question

Swaraj Manda Ltd. had 4,00.000 Equity share capital 10 exch), 2.000. 8 Redeemable Preference
Shares of 100 each and < 2,00,000 and 1.80,000 respectively in General Reserve and Statement of
Profit & Loss. It had also 8,000 in Securities Premium Account. The company exercised its option to
redeem the preference shares at 20 premium. For this purpose, the directors issued Equity Shares
10 each) to the old equity shareholders at the rate of 1 for 5 held at 10% premium. These shares
were subscribed and paid. Company had also 80,000 investments which were sold for 96.000. All
payments were made except to holders of 200 shares who could not be traced.
Pass necessary Journal Entries assuming that directors want minimum reduction in free reserves.
(Ans. Profit on Investment 16.000; Premium on Redemption * 40.000 8.000 New Premium +8,000
Old premium + 94.000 from Statement of P&L:CRR *1.20,000 out of profit): New Shares issued
New payment of 2,16,000 2,00.000 + 40,000 - 20.000 - 4,000)
8000 400.000​

Answer 1

Answer:

sorry don't know mate . hope you will get your answer

Answer 2

Explanation:

give me a answer plz?

what is journal entry in this question?