After studying this chapter you should be able to:
Understand the term “redemption of preference shares”.
Know the Provisions of the Company’s Act relating to issue and redemption of redeemable preference shares.
Distinguish between revenue profits and capital profits.
Determine the amount of new issues of shares (Minimum fresh issue of shares).
Understand and apply the logical sequence involved in redemption of preference shares.
Pass the required journal entries for redemption of preference shares.
Pass the needed journal entries for conversion of preference shares into equity shares.
Understand, create and utilize “capital redemption reserve account”.
Solve problems relating to redemption ...