C Ltd. had 10,000, 10% Redeemable Preference Shares of Rs.100 each, fully paid up. The company decided to redeem these preference shares at par, by issue of sufficient number of equity shares of Rs.10 each at a premium of Rs.2 per share as fully paid up. 

You are required to pass necessary Journal Entries including cash transactions in the books of the company.

Hinduja Company Ltd. had 5,000, 8% Redeemable Preference Shares of Rs.100each, fully paid up. The company decided to redeem these preference shares atpar by the issue of sufficient number of equity shares of Rs.10 each fully paid up atpar. 

You are required to pass necessary Journal Entries including cash transactions in the books of the company

Answer rating: 100% (QA)

Amount required for redemption is Rs 1000000 Therefore face v... View the full answer