10,000 7% redeemable preference shares of $10 each, fully paid, are outstanding on 1 January 2019...

 

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10,000 7% redeemable preference shares of $10 each, fully paid, are outstanding on 1 January 2019 in a company. The company decides to redeem these shares on 1 March 2019 at $13 per share. To provide for redemption, the company issued 5,000 equity shares of $10 each at $14 each, payable in full on 20 February 2019. The profit and loss account shows a credit balance of $100,000. Required: Show the ledger account. 10,000 7% redeemable preference shares of $10 each, fully paid, are outstanding on 1 January 2019 in a company. The company decides to redeem these shares on 1 March 2019 at $13 per share. To provide for redemption, the company issued 5,000 equity shares of $10 each at $14 each, payable in full on 20 February 2019. The profit and loss account shows a credit balance of $100,000. Required: Show the ledger account.

Answer rating: 100% (QA)

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