Sandip Sadhukhan (Student) (40 Points)
02 December 2015I have a dobut please anybody solve it,
Redemption of preference share of ₹ 1000 ( including premium of ₹200)
1.4.2015 Issue of share for redemption of ₹ 500 ( including premium of ₹100)
Securities premium of ₹ 100 ( which issue 1.4.2015) can adjust against premium on redemption of preference share .
Thank you,
GANESH MAHADEO UPALKAR
(ARTICLED ASSISTANT)
(256 Points)
Replied 03 December 2015
As Per Companies Act.2013
| Redemption Premium by | Can be paid Out of |
| Prescribed type of companies having Accounting standard compliance | Profits only |
| Other companies | Profits or Securities Premium |
Note: No such distinction is there is CA 1956
Sandip Sadhukhan
(Student)
(40 Points)
Replied 03 December 2015
Sir, I understand that
I have another question
premium on issue of new share which issue for redemption of preference share can adjust against premium on redemption of preference share?
Corporate accounting by "hanif and mukharjee" says that it is not possible but other author silent this point.
Please help, thank you)
GANESH MAHADEO UPALKAR
(ARTICLED ASSISTANT)
(256 Points)
Replied 04 December 2015
Yes it can be done but if there is no securities premium then POR(Premium on Redemption) should be adjusted against balance in general reserve and then against balance in P/L A/c
For reference see tulsian book solved question
PF & ESI Course - Labour Code 2019 Along with Examples and Case Studies
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