UPSC Exam  >  UPSC Questions  >  Emami limited wishes to redeem its preference... Start Learning for Free
Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above?
Most Upvoted Answer
Emami limited wishes to redeem its preference shares amounting ₹100000...
Redemption of Preference Shares:

- Emami Limited is redeeming its preference shares amounting to ₹100000 at a premium of 5%.
- This means the company will pay ₹100000 + 5% premium = ₹105000 to redeem the preference shares.
Issue of Equity Shares:

- To raise funds for the redemption, Emami Limited issues 5000 equity shares of ₹10 each at a premium of 5%.
- The total amount raised through this issue is calculated as follows:
- Face value of shares = 5000 * ₹10 = ₹50000
- Premium on shares = 5000 * ₹10 * 5% = ₹2500
- Total amount raised = ₹50000 + ₹2500 = ₹52500
Utilization of Profit and Loss Account Balance:

- Emami Limited has a balance of ₹100000 in the profit and loss account.
- This balance can be utilized to partly fund the redemption of preference shares or for any other business purpose as decided by the company.
In summary, Emami Limited is redeeming its preference shares at a premium of 5% and issuing equity shares to raise funds for the redemption. The balance in the profit and loss account can also be used to support this financial transaction or other business needs.
Explore Courses for UPSC exam

Top Courses for UPSC

Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above?
Question Description
Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹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 limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹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 limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above?.
Solutions for Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above? defined & explained in the simplest way possible. Besides giving the explanation of Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above?, a detailed solution for Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above? has been provided alongside types of Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above? theory, EduRev gives you an ample number of questions to practice Emami limited wishes to redeem its preference shares amounting ₹100000 at a premium of 5%.And for this purpose, issues 5000 equity shares of ₹10 each at premium of 5%.The company has also a balance of ₹100000 in profit and loss account journalise the above? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev