he summarized financial position of A Ltd. as on 30th June 2017 is as under: Share...

 

Transcribed Image Text:

he summarized financial position of A Ltd. as on 30th June 2017 is as under: Share capital: 10% Redeemable Preference Shares of * 100 Equity shares of 10 each 12% Debentures Revenue reserves Total Represented by Net assets The redeemable preference shares were due for redemption on 31st August 2017 and were redeemed and duly paid off. The company is permitted to redeem the debentures at any time at a premium of 10% and did so on 30th September 2017. 10,00,000 15,00,000 7,00,000 40,00,000 72,00, 000 72,00,000 The company was in a reasonably liquid position but to assist in providing funds for redemption of the redeemable preference shares, a rights issue of equity shares was made. 20,000 equity shares were issued for cash at a premium of 20 per share, 12.50 payable on application on 15th July 2017 and the balance on allotment on 31st July 2017. All cash due was received on the due dates. Pass journal entries to record the above transactions. he summarized financial position of A Ltd. as on 30th June 2017 is as under: Share capital: 10% Redeemable Preference Shares of * 100 Equity shares of 10 each 12% Debentures Revenue reserves Total Represented by Net assets The redeemable preference shares were due for redemption on 31st August 2017 and were redeemed and duly paid off. The company is permitted to redeem the debentures at any time at a premium of 10% and did so on 30th September 2017. 10,00,000 15,00,000 7,00,000 40,00,000 72,00, 000 72,00,000 The company was in a reasonably liquid position but to assist in providing funds for redemption of the redeemable preference shares, a rights issue of equity shares was made. 20,000 equity shares were issued for cash at a premium of 20 per share, 12.50 payable on application on 15th July 2017 and the balance on allotment on 31st July 2017. All cash due was received on the due dates. Pass journal entries to record the above transactions.

Answer rating: 100% (QA)

Date 2017 15th July Bank A 2017 To Equity share Application for 20000 Equity shame Is... View the full answer