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The capital of a company consist of ₹15000 preferences share of ₹10 each fully paid up and 10000 preference share of ₹10 each ₹8 paid up the company has a credit balance of ₹200000 in profit and loss account and ₹75000 in general reserve if company want to redeem the preference share ₹2 share calculate the amount of transfer to capital resumption reserve?
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The capital of a company consist of ₹15000 preferences share of ₹10 ea...
Calculation of Transfer to Capital Resumption Reserve

Step 1: Calculate the total amount to be redeemed
- Total preference shares to be redeemed = 15000 + 10000 = 25000 shares
- Redemption amount per share = ₹10 (face value) - ₹2 (redemption amount) = ₹8
- Total redemption amount = 25000 shares * ₹8 = ₹200000

Step 2: Calculate the available funds for redemption
- Credit balance in Profit and Loss account = ₹200000
- General reserve balance = ₹75000
- Total available funds = ₹200000 + ₹75000 = ₹275000

Step 3: Determine the amount to be transferred to Capital Resumption Reserve
- Amount required for redemption = ₹200000
- Amount available for redemption = ₹275000
- Excess funds = ₹75000 (₹275000 - ₹200000)
- Transfer to Capital Resumption Reserve = Excess funds = ₹75000
Therefore, the amount to be transferred to Capital Resumption Reserve to redeem the preference shares at ₹2 per share is ₹75000. This transfer ensures that the company has sufficient reserves to cover the redemption cost without affecting its financial stability.
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The capital of a company consist of ₹15000 preferences share of ₹10 ea...
15000×10=1.5L
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The capital of a company consist of ₹15000 preferences share of ₹10 each fully paid up and 10000 preference share of ₹10 each ₹8 paid up the company has a credit balance of ₹200000 in profit and loss account and ₹75000 in general reserve if company want to redeem the preference share ₹2 share calculate the amount of transfer to capital resumption reserve?
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The capital of a company consist of ₹15000 preferences share of ₹10 each fully paid up and 10000 preference share of ₹10 each ₹8 paid up the company has a credit balance of ₹200000 in profit and loss account and ₹75000 in general reserve if company want to redeem the preference share ₹2 share calculate the amount of transfer to capital resumption reserve? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The capital of a company consist of ₹15000 preferences share of ₹10 each fully paid up and 10000 preference share of ₹10 each ₹8 paid up the company has a credit balance of ₹200000 in profit and loss account and ₹75000 in general reserve if company want to redeem the preference share ₹2 share calculate the amount of transfer to capital resumption reserve? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The capital of a company consist of ₹15000 preferences share of ₹10 each fully paid up and 10000 preference share of ₹10 each ₹8 paid up the company has a credit balance of ₹200000 in profit and loss account and ₹75000 in general reserve if company want to redeem the preference share ₹2 share calculate the amount of transfer to capital resumption reserve?.
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