Question
On 31 December 2020 a company redeemed all the 11% redeemable preference shares in issue, (redeemable at the option of the company). It financed the
On 31 December 2020 a company redeemed all the 11% redeemable preference shares in issue, (redeemable at the option of the company). It financed the redemption by the issue of ordinary shares and a 9% loan from K-19 Bank, payable in 3 years time. The cash for both the share issue and loan was received on 31 December 2020.
Choose 3 correct entries for the double entry required on 31 December 2020 to record the receipt of the cash raised to finance the redemption:
Credit: Bank
Debit: Bank overdraft
Credit: 9% Loan: K-19 Bank
Debit: 11% Redeemable preference share capital
Credit: 11% Redeemable preference share capital
Credit: Ordinary share capital
Debit: Ordinary share capital
Debit: Bank
On 31 December 2020 a company redeemed all the 11% redeemable preference shares in issue, (redeemable at the option of the company). It financed the redemption by the issue of ordinary shares and a 9% loan from K-19 Bank, payable in 3 years time. The cash for both the share issue and loan was received on 31 December 2020.
Choose 3 correct entries for the double entry required on 31 December 2020 to record the receipt of the cash raised to finance the redemption:
Credit: Bank | ||
Debit: Bank overdraft | ||
Credit: 9% Loan: K-19 Bank | ||
Debit: 11% Redeemable preference share capital | ||
Credit: 11% Redeemable preference share capital | ||
Credit: Ordinary share capital | ||
Debit: Ordinary share capital | ||
Debit: Bank |
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Accounting The Ultimate Guide To Accounting For Beginners
Authors: Greg Shields
1st Edition
1546332820, 978-1546332824
