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Question
S Ltd. issued 2,000, 10% Preference shares of Rs. 100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 Equality Shares of Rs. 100 each at a premium of 20% per share. At the time of redemption of Preference Shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be________.
S Ltd. issued 2,000, 10% Preference shares of Rs. 100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 Equality Shares of Rs. 100 each at a premium of 20% per share. At the time of redemption of Preference Shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be________.
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Solution
The correct option is D Rs. 50,000
10% preference shares of Rs. 100 each ( 2,000 x 100 ) 2,00,000Less: Equity shares of Rs. 100 each ( 1,500 x 100) 1,50,000 Capital Rdeemption Reserve Account 50,000.
10% preference shares of Rs. 100 each
( 2,000 x 100 ) 2,00,000
Less: Equity shares of Rs. 100 each
( 1,500 x 100) 1,50,000
Capital Rdeemption Reserve Account 50,000.
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