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The following is the balance sheet of Raj Ltd., as on 31 st December 2009: The company resolved to redeem

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The following is the balance sheet of Raj Ltd., as on 31st December 2009:

The company resolved to redeem its preference shares at a premium of 20% out of profits. Pass the necessary journal entries and show the important ledger accounts and the company’s balance sheet after completion of redemption. 

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Liabilities Share Capital: 2,000 8% Redeemable Preference Shares of 100 each, fully paid 50,000 Equity Shares of 10 each, fully paid Profit & Loss A/c Sundry Creditors 2,00,000 5,00,000 2,40,000 1,00,000 10,40,000 Assets Sundry Assets Bank Balance 6,00,000 4,40,000 10,40,000

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here is the information presented in a table format Balance Sheet as of 31st December 2009 Before Re…View the full answer


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Corporate Accounting

Corporate Accounting

ISBN: 9789353160739

1st Edition

Authors: Anita Raman, P. Radhika

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Question Details
Chapter # 3- REDEMPTION OF PREFERENCE SHARES..
Section: OTHER EXERCISES
Problem: 3
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Question Posted: August 31, 2023 04:47:54
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