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Spotlight Ltd has issued share capital of 60, XXXXXXXXXX% redeemable cumulative preference shares of ~ 20 each and 4,00,000 equity shares of ~ 10 each

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Spotlight Ltd has issued share capital of 60, XXXXXXXXXX% redeemable cumulative preference shares of ~ 20 each and
4,00,000 equity shares of ~ 10 each
Answered 5 days After Sep 13, 2022

Solution

Rochak answered on Sep 19 2022
63 Votes
(i) Journal Entries
a. For investments sold for the purpose of Redemption
Bank a/c                        Dr. Rs. 3,00,000
To Investments a/c                Cr.            3,00,000
. For transfer of balance from Profit & Loss A/c to Preference Shares Redemption A/c
Preference shares redemption reserve A/c            Dr. 3,50,000
    To Profit and loss A/c                    Cr.         3,50,000
Bank A/c                            Dr. 3,50,000
    To Preference shares redemption reserve A/c    Cr.         3,50,000
c....
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