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Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above?
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Emami limited wishes to redeem its preference shares amounting ₹10000 ...
Journal Entry for Redemption of Preference Shares and Issuance of Equity Shares:
- Redemption of Preference Shares:
- Issuance of Equity Shares:
- Profit and Loss Appropriation:
The journal entry for the redemption of preference shares amounting to ₹10,000 at a premium of 5% would be as follows:
Preference Share Capital A/c Dr. ₹10,000
Securities Premium A/c Dr. ₹500
To Bank A/c ₹10,500
This entry reflects the reduction in the company's liability by redeeming the preference shares at a premium of 5%.
The journal entry for the issuance of 5000 equity shares of ₹10 each at a premium of 5% would be as follows:
Bank A/c Dr. ₹52,500
Equity Share Capital A/c ₹50,000
Securities Premium A/c ₹2,500
This entry represents the inflow of funds from the issuance of equity shares at a premium of 5%, which increases the company's equity capital.
The balance of ₹100,000 in the profit and loss account can be appropriated as per the company's policy. This amount can be used for dividends, reserves, or any other purpose as deemed fit by the management.
In conclusion, the journal entries for the redemption of preference shares, issuance of equity shares, and appropriation of profit and loss account reflect the financial transactions undertaken by Emami Limited to manage its capital structure effectively.
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Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above?
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Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized 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 limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above?.
Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized 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 limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above?.
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Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above?, a detailed solution for Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above? has been provided alongside types of Emami limited wishes to redeem its preference shares amounting ₹10000 at a premium of 5%.And for this purpose, issues 5000 equity shades of ₹10 each at premium of 5%.The company has also a balance of ₹,100000 in profit.And loss account journalized the above? theory, EduRev gives you an
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