CA Day celebration 2024 Easy Office
LCI Learning

Redemption of preference capital

This query is : Resolved 
Profile Image

Profile Image

(Querist)
23 April 2023 A company's balance sheet

ESC 100 BANK 400
PSC 50
P&L (300)
G/R 50
LOAN 500

Can the company redeem it's preference share by using general reserve and kindly tell me , is it bad for creditor and members.
Kindly explain it . No one gave me
Answer .
Profile Image

Manish

Profile Image

Manish (Expert)
25 April 2023 GR minus debit balance of P&L = -250. Not sufficient to create CRR.
The company cannot redeem pref. shares out of reserves here. It needs to issue fresh shares.
Profile Image

Jatin Bajaj

Profile Image

Jatin Bajaj (Expert)
02 May 2023 The Company can redeem the prefernce shares by proceeds of fresh issue and out of the profit of the Company
Upgrade to CAclubindia Pro. Subscribe Now!


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


CA Day celebration 2024 with Tally CCI Pro

Trending Online Classes

view all classess
Let's Talk Money: You've Worked Hard for It, Now Make It Work for You
Click here for more bestsellers


Answer Query



Quick Links