Solid Ltd. issued 2,000, 10% preference shares of ₹100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 equity shares of ₹100 each at a premium of 20% per sha
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
Solid Ltd. issued 2,000, 10% preference shares of ₹100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 equity shares of ₹100 each at a premium of 20% per share. At the time of redemption of preference shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be —
Answer & Explanation:
Correct Answer: Option (A)
Correct answer: (A) ₹50,000. Nominal preference capital 2,00,000 minus fresh nominal equity capital 1,50,000 = 50,000; securities premium does not reduce the CRR requirement.
Topics: Fundamentals of Accounting and Auditing
Related Questions in this Topic
- 'Disclaimer of Opinion' means —
- Which of the following is necessarily to be included in an auditor's report —
- Detection and prevention of fraud is the _________ objective of auditing activity.
- The form and basic contents of statutory audit report are —
- For auditors, which of the following document generally contains the scope of work —