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A company has 8,000 redeemable preference shares of Rs.100 each fullypaid. The company decides to redeem the shares on 30th June 2008 at a premium of 7%. The company has sufficient profits. The following issues are made for the redemption purpose:i. 3,000 6% Debentures of Rs.100 each at Rs.106ii.2,000 equity shares of Rs.100 each at Rs.111 The issues were fully subscribed and all the amounts were received, the redemption was duly carried out. Give journal entries. |
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