I don't understand this entry

how I got 45000 for profit and loss and 105000 for general reserve?

and what is the meaning of capital redemption reserve A/C?

Exercise: 3 KitKat Company Issued 3000,10% Preference shares of S100 each, all shares being fully paid. On 31.3.08, Profit and Loss Account showed an undistributed profit of $50,000 and General Reserve Account stood at $120,000. On 2.4.08, the directors decided to issue 1500, 6% Preference shares of $100 each for cash and to redeem the existing preference shares at a premium of 5%, utilizing as much as would be required for the purpose. Show the journal entries to record the transactions. Solution Journal Entries in the Books of KitKat Company 1. Redeemable Preference Share Capital 300000 Premium of Redemption Preference Share Capital 15000 Preference shareholders 315000 For amount payable on redemption of 3000 preference shares, with premium of 5% (3000x100=300000) 15000 2. General reserve 15000 Premium of Redemption Preference Share Capital (For the adjustment of premium from general reserve) 3. Bank 150000 Preference share capital 150000 (For the issue of new preference shares 1500x100) 4. General Reserve 105000 Profit and Loss 45000 To Capital Redemption Reserve A/c 150000 5. Preference shareholders 315000 Bank 315000 (For the final payment to preference shareholders) 2