urgent -Capital redemption reserve

Gargi Ranade (CS) (619 Points)

14 February 2009  

Hi dear all!

Please tell me what are the use of Capital Redemption Reserve created after redemption of Redeemable prefernce shares ?

Book which I generally refer mention that Co. can use CRR for the purpose of bonus issue and redemption of redeemable preference shares, In that case if I utilised CRR for further redemption then what will be accounting entries in that regard ?does that ean I need not require further CRR at the time of next redemption ?

Please clarify my doubts at the earliest

Thanks  and regards