Chandu Ltd. has issued 1,00,000 redeemable preference shares of ₹100 each, on which fully amount was called, are due for redemption at a premium of 20 percent. The following balances are appearing in the books of the com

Journal Entries in the Books of Chandu Ltd. Date Particulars L.F. Amount Rs.(Dr.) Amount Rs.(Cr.) Bank A/c Dr. 25,00,000 To Equity Share Application & Allotment A/c 25,00,000 (Being application money received @ ₹12.50 per share on 200000 equity share) Equity Share Application & Allotment A/c Dr. 25,00,000 To Equity Share Capital A/c 20,00,000 To Securities Premium A/c 5,00,000 (Being application money transferred to equity share capital a/c and securities premium a/c) Securities Premium A/c Dr. 18,00,000 To Premium on redemption of preference share A/c 18,00,000 (Being Premium on Redemption of Preference Share provided for out of securities premium a/c) 9% Redeemable Preference Share Capital A/c Dr. 90,00,000 Premium on Redemption of Preference Share A/c Dr. 18,00,000 To Preference Shareholder A/c 1,08,00,000 (Being Preference Share Redeem at 20% premium due) Preference Shareholder A/c 1,08,00,000 To Bank A/c 1,08,00,000 (Being amount paid) General Reserve A/c Dr. 60,00,000 Development Rebate Reserve A/c Dr. 10,00,000 To Capital Redemption Reserve A/c 70,00,000 (Being amount Transferred) Working Note: Only fully paid-up shares can be redeemed. New Issue of Equity Shares Particulars Amount (₹) 9% Redeemable Preference Share Capital 90,00,000 Less: Redemption out of revenue profit General Reserve (60,00,000) Development Rebate Reserve (10,00,000) Equity Shares to be issued for 20,00,000