A company redeems 60 000 $1 redeemable preference shares at a premium of $0.25 per share. The
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A company redeems 60 000 $1 redeemable preference shares at a premium of $0.25 per share. The shares were originally issued at par. No new issue of shares was made to finance the redemption.
What effect does the redemption have on the Profit and Loss Account and the Capital Redemption Reserve?
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The redemption of preference shares has specific accounting implications Lets break down the effects on the Profit and Loss Account and the Capital Re...View the full answer
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