Dakshayini posted an Question
September 15, 2020 • 23:14 pm 30 points
  • UGC NET
  • Commerce

Simple method explain about redemption of share capital

simple method explain about redemption of share capital

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  • Rucha rajesh shingvekar best-answer

    (a) At first, calculate the amount paid to the preference shareholders (without premium), i.e., Capital sum/Principal amount. (b) Deduct the amount taken from General Reserve/Profit & Loss Account for Capital Redemption Reserve Account. (c) Balance left should be the required funds to be met from fresh issue at par.

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