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Commerce · Q1707

Accounting

Graduate and Post Graduate · Commerce · question 1707

Q1707

Redeemable preference shares of Rs. 1,00,000 are redeemed at a premium of 5% for which fresh equity shares of Rs. 40,000 are issued at par. What amount should be transferred to Capital Redemption Reserve account:

A.
Rs. 1,05,000
B.
Rs. 60,000
Answer
C.
Rs. 40,000
D.
Rs. 0

Answer: Option B

Solution

Answer: Option B
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