The corporation have the following balance before all preference shares are called for redemption : Ordinary Shares
Question:
The corporation have the following balance before all preference shares are called for redemption : Ordinary Shares 1,000,000 par value 100 Share Premium on ordinary shares 500,000 , Redeemable Preference share 2,000,000 par value 200.00 Share premium on preference shares 200,000.00. retained earnings 500,000.00. If all preference shares are redeemed at 180 per share which statement is true? *
A credit to retained earnings amounting to 200,000
A credit to premium on ordinary shares amounting to 200,000
Gain on redemption amounting to 200,000
A credit of 200,000 to share premium preference shares
Fundamental Accounting
ISBN: 9781485112112
7th Edition
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit