A company issued ₹1,80,000 redeemable preference shares at par on 1^st January 1988, redeemable at the option of the company on or after 31^st December 1992 in whole or in part.

The following redemption was made from out of profits; 

In December 1994, the company issued equity shares of the value of ₹60,000 at a premium of 2% and on 31^st December in the same year, it redeemed the balance of preference shares. Pass the necessary journal entries to record the above transactions.

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On 30th June 1993 On 30th June 1994 *60,000 *40,000