Question

Which of the following cannot be utilized for the purpose of redemption of preference shares-
a) Proceeds from issue of equity shares
b) Proceeds from issue of preference shares
c) Proceeds from issue of rights shares
d) Proceeds from issue of debentures

Answer 1

$\Large{\boxed{\underline{\overline{\mathfrak{\star\:AnSwer\:\star}}}}}$

Redeemable preference shares can be redmeed either at per or at premium. if the share are redmeed at a premium or profit be provided out of security or profit and loss account or genaral account. the processed from fresh issue of debentures cannot be utilised for redemption.