could you please explain thoroughly how to solve it, I have a ready answers but dont know how they got it?

estion 5.4 A public limited company has 100,000 ordinary shares at 1 in issue. These shares had originally been issued at par. A total of 5,000 ordinary shares of El are to be redeemed at premium of 0.50 out of distributable profits making a capital repayment of 7,500. How should this transaction be recorded? The entries are: Dr. Share capital 5,000 Dr. Retain profit 7,500 Cr. Capital redemption reserve 5,000 Cr. Bank 7,500