Beta Ltd. had issued 10,000 Redeemable Preference Shares of ₹ 100 each fully called, due for redemption at a premium of 10%. The following balances appeared in the books of the company : ₹ Redeemable Preference Share Cap

Journal Entries in the Books of Beta Ltd. Date Particulars L. F. Amount (Dr.) ₹ Amount (Cr.) ₹ Preference Share Capital A/c Dr. 10,00,000 To Call in Arrear A/c 20,000 To Share Forfeiture A/c 80,000 (Being 1000 share forfeited) Share Forfeiture A/c Dr. 80,000 To Capital Reserve A/c 80,000 (Being Amount of share forfeiture transferred to Capital Reserve Account) Date of Redeemable Preference Share Capital A/c Dr. 9,00,000 Premium on Redemption of Preference Shares A/c Dr. 90,000 To Preference Shareholders A/c 9,90,000 (Amount due on redemption of Preference Shares at 10% premium) Date of Transfer Securities Premium A/c Dr. 80,000 General Reserve A/c Dr. 10,000 To Premium on Redemption of Preference Shares A/c 90,000 (Premium on redemption of Preference Shares provided for out of General Reserve and Securities Premium A/c) Date of Transfer General Reserve A/c Dr. 5,90,000 Foreign Project Reserve A/c Dr. 1,00,000 Capital Reserve A/c Dr. 80,000 To Capital Redemption Reserve A/c 7,70,000 (Amount Transferred to Capital Redemption Reserve A/c) Date of Receipt Bank A/c Dr. 1,30,000 To Equity Share Application & Allotment A/c 1,30,000 (Amount received on issue of 32,000 Equity Shares @ 10 per share.) Date of Allotment Equity Share Application & Allotment A/c Dr. 1,30,000 To Equity Share Capital A/c 1,30,000 (Amount received on application transferred to equity share capital a/c on allotment) Date of Payment Preference Shareholders A/c Dr. 9,90,000 To Bank A/c 9,90,000 (Being amount paid to preference shareholders on redemption.) Assumption: It is assumed that the 1000 preference share whose whereabouts is unknown is forfeited.