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The summarised balance sheet of Gaur Ltd. on December 2004 was as follows: On the above date, the preference shares

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The summarised balance sheet of Gaur Ltd. on December 2004 was as follows:

On the above date, the preference shares were redeemed at a premium of 10%. You are required to pass journal entries and give the amended balance sheet.

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Liabilities Share Capital: 2,000 9% Redeemable Preference Shares of 100 each, fully paid 80,000 Equity Shares of 10 each, fully paid Profit & Loss A/c Sundry Creditors 2,00,000 8,00,000 2,60,000 1,40,000 14,00,000 Assets Sundry Assets Bank Balance 9,80,000 4,20,000 14,00,000

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Pass Journal Entry for Redemption of Preference Shares When redeeming preference shares we need to c…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: 2
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Question Posted: August 31, 2023 04:47:56
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