Redemption of preference shares -Test 1

Preference shares can be redeemed :

A company cannot issue _______.

Redeemable Preference shares of Rs.1,00,000 are redeemed at par for which fresh equity shares of Rs.80,000 are issued at discount of 10%. The amount transferred to Capital Redemption Reserve will be :

A company cannot issue any preference share which is redeemable after the expiry of a period of ______.

The balance appearing in books of a company at the end of the year were :

CRR A/c Rs.50,000, Security Premium Rs.5,000 Revaluation Reserve Rs.20,000, P & L A/c (Dr.) Rs.10,000. Maximum amount available distribution of Bonus shares will be :

Preference shares can be redeemed only if these are _____.

A Ltd. had 3,000, 12%, Redeemable preference shares of Rs.100 each, fully paid up. The company issued 25,000 equity shares of Rs.10 each at par and 1,000 14%. Debentures of Rs.100 each. All amounts were received in full. The payment was made in full. The amount to be transferred to capital Redemption Reserve Account Rs. :

Preference shares can be redeemed out of :

A Preference share which carry the right of participating in the surplus left after paying equity dividend is called :

Preference shares amounting to Rs.4,00,000 are redeemed at a premium of Rs.2% by issue of equity shares amounting to Rs.2,00,000 at a premium of 12%. The amount to be transferred to capital redemption reserve is ______.

Which of the following redeemable preference shares of Rs.10.00 each are eligible for redemption ?

Which does not from part of Divisible profits ?

In case of issue of shares, amount received above par value is credited to which account ?

The premium, if any payable on redemption must be provided for out of :

Which of the following statement is true ?

X Ltd. had 5,000 12% Redeemable Preference Shares of Rs. 100 each. The company decided to redeem them by issuing equity shares of Rs.100 each @ a premium of 25%. The member of equity shares to be issued are :

If preference shares are redeemed out of the fresh issue for equity shares, which account will be credited ?

When preference shares are redeemed out of distributable  profits, an amount equal to the nominal value of shares redeemed out of distributable profits should be transferred to :

WYE Ltd. redeemed 1,000 10% preference shares of Rs.100 each at a premium of Rs.10 per share. It had a balance of Rs.50,000 in general reserve and Rs.27,000 in profit and loss account. For the purpose of redemption WYE Ltd. issued 5,000 equity shares of Rs.10 each at a premium of 20%. The amount to be transferred to Capital Redemption Reserve at the time of redemption will be :

In case of redemption option of preference shares is out of the fresh issue of equity shares, which of the following account will be credited ?

Which of the following can be utilised for redemption of preference shares ?

Preference shares cannot be redeemed unless they are :

Anil Ltd. decides to redeem 10,000 Preference Shares of Rs.10 each at 10% premium. Balance in Profit and Loss A/c is Rs.65,000 and in Securities premium A/c is 5,000. You are required to calculate the minimum number of equity shares of rs.10 each to be issued for the purpose of Redemption, if minimum equity shares are to be re-issued it means maximum CRR is to be created :

Securities Premium A/c cannot be used by the company in :

RS.9,00,000 preference shares are to be redeemed by issue of 3000 equity shares, face value Rs.100 each for Rs.140 each. Capital Redemption Reserve is to be credited by :

As per the Companies Act, 2013 only preference shares which are redeemable within ________ can be issued.

Which of the following accounts can be transferred to Capital Redemption Reserve account ?

The Board of Directors of a company decides to issue minimum number of equity shares of Rs.8 each to redeem 45000 preference shares of Rs.10 each. The maximum amount of divisible profits available for redemption is Rs.2,50,550. Number of shares required to be issued by a company to ensure that provisions of section 55 are not varied. Also determine the number of shares, if the company decides to issue shares in multiples of Rs.50 only.

The Capital Redemption Reserve Account may be applied by the company

Which of the following statements is false ?