The following points highlight the top eight problems on redemption on preference shares with their relevant solutions.
Illustration 1:
On 31st March, 2012 the balance sheet of Utopia Limited stood as follows:
Illustration 2:
Following is the Balance Sheet of R. Ltd. as on March 31, 2012:
Illustration 3:
On 1st April, 2012 the following balances were extracted from the ledger of Enkay Limited:
Illustration 4:
From the following particulars, determine the minimum amount of fresh issue of shares of Rs. 10 each to be made as a discount of Rs. 1 per share for redemption of preference shares at a premium of 5%.
Illustration 5:
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The following information gathered from the balance sheet of Abhinav Limited as on 31st March, 2012 is given to you:
Illustration 6:
On 31st March, 2012 the summarised balance sheet of Madhu Limited stood as follows:
Illustration 7:
The relevant section of the Balance Sheet of Tee Limited as on 31st March, 2012 is given below:
Illustration 8:
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Brisk Trading Corporation Ltd. has an authorised capital of Rs. 75,00,000 divided into shares of Rs. 10 each. On 31st March, 2012 its Balance Sheet appeared as follows:
