MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Issued at a Discount and Redeemed at Par

To redeem 15

Question

To redeem 15% Pref. shares of Rs. 1,00,000 at 5% premium, Rs. 10,000 12%. Debentures of Rs. 100 each are issued at a discount of 10%. The amount to be transferred to Capital Redemption Reserve is _______.

A

Nil

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Rs.90,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Rs.91,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Rs. 1,00,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Rs. 1,00,000
The nominal value of preference shares that are to be redeemed is only transferred to capital redemption reserve account. As here the nominal value of preference shares to be redeemed is Rs 1,00,000.
So the amount to be transferred to CRR account is 1,00,0000.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Preference shares amounting to Rs. 2,00,000 are redeemed at a premium of 5%, by issue of shares amounting to Rs. 1,00,000 at a premium of 10 %. The amount to be transferred to capital redemption reserve will be _____.

Q. Redeemable Preference Shares of Rs. 1,00,000 are redeemed at a premium of

5 %

for which purpose fresh equity capital of Rs. 40,000 is issued at par. What amount should be transferred to Capital Redemption Reserve account?

Q. Redeemable preference shares of Rs. 1,00,000 are redeemed at par for which purpose fresh equity shares of Rs. 80,000 are issued at a discount of 10%. The amount to be transferred to Capital Redemption Reserve Fund will be ______________.

Q. A limited company has to redeem redeemable preference shares of the value of Rs. 1,00,000 for which the company has issued 3,000 equity shares of Rs. 10 each at a premium of 10%. The amount to be transferred to capital redemption reserve account will be ___________.

Q. A company wishes to redeem its preference shares amounting to Rs. 1,00,000 at a premium of 5% and for this purpose issues 5,000 equity shares of Rs. 10 each at a premium of 5%. The company also has a balance of Rs. 1,00,000 as General Reserves and Rs. 50,000 in profit and loss account. The amount to be transferred to Capital Redemption Reserve account for the purpose of redemption is ____________.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Issued at Par and Redeemed at Par

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Issued at a Discount and Redeemed at Par

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon