Class/Course - CA - CPC

Subject - Fundamentals of Accounting

Chapter - Redemption of Preference Shares


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Q.1 Ajay 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 Rs. 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 the new share is to be issued at a discount of 20%.
  13, 125 shares
  5,625 shares
  13,750 shares
  5,000 shares