The balance sheet of Raman Ltd., as on 31 st March 1987, is as follows: Redeemable preference shares were due
The balance sheet of Raman Ltd., as on 31st March 1987, is as follows:
Redeemable preference shares were due for payment on 1st April 1987 at a premium of 10%. The company sent a reminder for the final call on the remaining 300 redeemable preference shares and could collect money from shareholders holding 200 shares at ₹20 per share, and forfeited the defaulting 100 shares. The company sold all investments and could recover 90% of the cost of such investment. The company issued adequate number of new equity shares at par, to the extent available profits were insufficient to backup the redemption.
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