The following scenarios each contain a different share redemption situation.
Prepare the appropriate journal entries and explain what you have done in each case:
Scenario 1
A company redeemed its 200,000 6% preference share capital of £1 each at a premium of £0.10. Originally these shares were issued at a premium of £0.05 per share. There was no issue of new shares to finance the redemption.
Scenario 2
100,000 8% preference shares of £0.75 each were redeemed at a premium of £0.10 per share. These shares were originally issued at par. To finance the redemption, the company issued 150,000 ordinary shares of £1 each at a premium of £0.25 per share.
Scenario 3
A company redeemed its 180,000 8% £1 preference share capital at a premium of £0.15 per share. In order to do so, it issued an equal number of 6% £0.50 preference shares at par. The shares being redeemed were originally issued at a premium of £0.25 and the balance on the share premium account is £30,000.

Scenario 4
A company issued 100,000 6% £1 preference shares at a premium of £0.16 per share in order to finance the redemption of 200,000 8% preference shares of £0.50 each at a premium of £0.15 per share. These shares were originally issued at a premium of £0.10 per share, which was utilised to issue bonus shares to the ordinary shareholders. There is no balance in the share premium account.
Scenario 5 

A company, which had issued 100,000 8% preference share capital of £1 at par, redeemed the shares at a premium of £0.15 per share. To finance the redemption, the company issued 100,000 6% preference shares of £0.50 each at £1.15.