The Following is the summarised balance sheet of vikram ltd. as on 31.3.2021 Liabilities: 10% Redeemable preference share of $100 each $1,00,000 (less) calls in arrears $1,000 ($1,00,000-&1,000) $99,000 50,000 equity shares of $10 each fully paid $5,00,000 General reserve $1,00,000 Capital reserve $50,000 Creditors $1,51,000 Total $9,00,000 Assets : Sundry assets $8,10,000 Cash at bank $10,000 Investments $80,000 Total $9,00,000 For the purpose of redemption of preference shares, the company made a fresh issue of 4,500 equity shares of $10 each at a premium of 10%. the issue was taken up and paid for in full. the money on calls-in-arrears was duly received in full. the investments were sold for $75,000 the preference shares were redeemed at a premium of 10% write journal entries and prepare a balance sheet after redemption.
The Following is the summarised balance sheet of vikram ltd. as on 31.3.2021
Liabilities:
10% Redeemable
(less) calls in arrears $1,000
($1,00,000-&1,000) $99,000
50,000 equity shares of $10 each fully paid $5,00,000
General reserve $1,00,000
Capital reserve $50,000
Creditors $1,51,000
Total $9,00,000
Assets :
Sundry assets $8,10,000
Cash at bank $10,000
Investments $80,000
Total $9,00,000
For the purpose of redemption of preference shares, the company made a fresh issue of 4,500 equity shares of $10 each at a premium of 10%. the issue was taken up and paid for in full. the money on calls-in-arrears was duly received in full.
the investments were sold for $75,000
the preference shares were redeemed at a premium of 10% write
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