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On 31 December 2020 a company redeemed all the 11% redeemable preference shares in issue (redeemable at the option of the company), at a premium
On 31 December 2020 a company redeemed all the 11% redeemable preference shares in issue (redeemable at the option of the company), at a premium of 10%.
Choose the 3 correct debit entries that will be made on 31 December 2020 to give effect to this redemption and record the amount owed to the preference shareholders (including the preference dividend):
Debit: Retained Income | ||
Debit: 11% Redeemable preference shares | ||
Debit: 11% Redeemable preference share capital | ||
Debit: Bank | ||
Debit: Dividends outstanding | ||
Debit: Preference dividend | ||
Debit: Premium | ||
Debit: Preference shares | ||
Debit: Premium at redemption of preference shares | ||
Debit: Dividends | ||
Debit: Preference Shareholders |
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