Question: how I got 10$ as a balance before new issue? Example 5 $1Doo debentures, issued at a premium of 5% Redeemed at a premium of

Example 5 $1Doo debentures, issued at a premium of 5% Redeemed at a premium of 20% Case 1 $ ? 10 10 Case 1: 1,200 $1 ordinary shares at par These balances may not be the same, as some funds may have been used up in the bonus issue Hand redemption Balance before new issue Premium on new issue Balance after new issue Less: Amount transferred to the redemption account (should be the lower of the balance after the new issue or the original premium on the issue) Balance after redemption 1000*5%=50 10 17 Dr. Cr. 1000 Debentures Debenture Redemption Being redemption of debentures 1000 1200 1200 10 190 Bank Ordinary Share Being issue of ordinary shares Share Premium Profit and loss Debenture Redemption (1000*20%) Being premium on redemption Debenture Redemption Bank (1000*1.2) Being amount paid on redemption 200 1200 1200 18 Example 5 $1Doo debentures, issued at a premium of 5% Redeemed at a premium of 20% Case 1 $ ? 10 10 Case 1: 1,200 $1 ordinary shares at par These balances may not be the same, as some funds may have been used up in the bonus issue Hand redemption Balance before new issue Premium on new issue Balance after new issue Less: Amount transferred to the redemption account (should be the lower of the balance after the new issue or the original premium on the issue) Balance after redemption 1000*5%=50 10 17 Dr. Cr. 1000 Debentures Debenture Redemption Being redemption of debentures 1000 1200 1200 10 190 Bank Ordinary Share Being issue of ordinary shares Share Premium Profit and loss Debenture Redemption (1000*20%) Being premium on redemption Debenture Redemption Bank (1000*1.2) Being amount paid on redemption 200 1200 1200 18
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