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Emami ltd wishes to redeem it's preference shares amounting to Rs 100000 at a premium of 5% and for this purpose issues 5000 equity shares of Rs 10 each at a premium of 5% . The company has also a balance of Rs 100000 in profit and loss account. journalise the above.?
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Emami ltd wishes to redeem it's preference shares amounting to Rs 1000...
Journal Entry for Emami Ltd:
Redemption of Preference Shares:
- Preference Share Capital A/c Dr 100,000
- Securities Premium A/c Dr 5,000
- To Preference Shareholders A/c 105,000
Issue of Equity Shares:
- Bank A/c Dr 55,000
- Securities Premium A/c Dr 5,000
- To Equity Share Capital A/c 50,000
- To Securities Premium A/c 10,000
Transfer of Profit to Equity Shares:
- Profit and Loss A/c Dr 100,000
- To Equity Share Capital A/c 100,000
Explanation:
Redemption of Preference Shares:
- The company is redeeming its preference shares amounting to Rs 100,000 at a premium of 5%. The journal entry debits the Preference Share Capital account with Rs 100,000 and the Securities Premium account with Rs 5,000. The amount is credited to the Preference Shareholders account.
Issue of Equity Shares:
- The company is issuing 5000 equity shares of Rs 10 each at a premium of 5%. The journal entry debits the Bank account with Rs 55,000 and the Securities Premium account with Rs 5,000. The Equity Share Capital account is credited with Rs 50,000, and the Securities Premium account is credited with Rs 10,000.
Transfer of Profit to Equity Shares:
- The company has a balance of Rs 100,000 in the Profit and Loss account, which is being transferred to the Equity Share Capital account. This will increase the Equity Share Capital and strengthen the financial position of the company.
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Emami ltd wishes to redeem it's preference shares amounting to Rs 100000 at a premium of 5% and for this purpose issues 5000 equity shares of Rs 10 each at a premium of 5% . The company has also a balance of Rs 100000 in profit and loss account. journalise the above.?
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Emami ltd wishes to redeem it's preference shares amounting to Rs 100000 at a premium of 5% and for this purpose issues 5000 equity shares of Rs 10 each at a premium of 5% . The company has also a balance of Rs 100000 in profit and loss account. journalise the above.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Emami ltd wishes to redeem it's preference shares amounting to Rs 100000 at a premium of 5% and for this purpose issues 5000 equity shares of Rs 10 each at a premium of 5% . The company has also a balance of Rs 100000 in profit and loss account. journalise the above.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Emami ltd wishes to redeem it's preference shares amounting to Rs 100000 at a premium of 5% and for this purpose issues 5000 equity shares of Rs 10 each at a premium of 5% . The company has also a balance of Rs 100000 in profit and loss account. journalise the above.?.
Emami ltd wishes to redeem it's preference shares amounting to Rs 100000 at a premium of 5% and for this purpose issues 5000 equity shares of Rs 10 each at a premium of 5% . The company has also a balance of Rs 100000 in profit and loss account. journalise the above.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Emami ltd wishes to redeem it's preference shares amounting to Rs 100000 at a premium of 5% and for this purpose issues 5000 equity shares of Rs 10 each at a premium of 5% . The company has also a balance of Rs 100000 in profit and loss account. journalise the above.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Emami ltd wishes to redeem it's preference shares amounting to Rs 100000 at a premium of 5% and for this purpose issues 5000 equity shares of Rs 10 each at a premium of 5% . The company has also a balance of Rs 100000 in profit and loss account. journalise the above.?.
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