The following is the balance sheet of Ramani company limited as on 31.12.96: The company resolved to
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The following is the balance sheet of Ramani company limited as on 31.12.96:
The company resolved to redeem its preference shares at a premium of 2% out of profits. Give the necessary journal entries.
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Liabilities Share capital: 1,000 6% Redeemable preference shares of ₹100 Each fully paid 20,000 equity shares of 10 Each Profit & Loss A/c Sundry creditors ₹ 1,00,000 2,00,000 1,20,000 30,000 4,50,000 Assets Fixed assets Cash at Bank ₹ 3,10,000 1,40,000 4,50,000
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