Which of the following accounts can be used for transfer to capital redemption

Which of the following accounts can be used for

This preview shows page 31 out of 31 pages.

10. Which of the following accounts can be used for transfer to capital redemption reserve account?(a) General reserve account (b) Forfeited shares account(c) Profit prior to incorporation (d) Securities premium account11. Preference shares amounting to `2,00,000 are redeemed at a premium of 5%, by issue of shares amounting to `1,00,000 at a premium of 10%. The amount to be transferred to capital redemption reserve = ?12. Securities premium cannot be used to _______.13. A company cannotissue redeemable preference shares for a period exceeding _____________.14. Which of the following cannotbe used for the purpose of creation of capital redemption reserve account?(a) Profit and loss account (credit balance) (b) General reserve account(c) Unclaimed dividend account (d) All of the aboveANSWERS 1. (b) 2. (b) 3. (b) 4. (a) 5. (c) 6. (b) 7. (a) 8. (a) 9. (d) 10. (a) 11. (b) 12. (b) 13. (d) 14. (c)© The Institute of Chartered Accountants of India
Background image

You've reached the end of your free preview.

Want to read all 31 pages?

  • Spring '17
  • RENU EMILE
  • Balance Sheet, Capital redemption reserve

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture