Question Tag: Redemption
Search
500
+ past questions and counting.
- 15 Marks
FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts
Prepare journal entries, ledger accounts, and a revised statement of financial position after the redemption of preference shares.
Question
Josephine Limited has an Authorized share capital of 15,000,000 Ordinary Shares of N1 each and 2,000,000 5% Redeemable Preference Shares of N1 each. The Statement of Financial Position of the company as at 31 December 2010 is as follows:
The preference shares are redeemable at N1.10 per share, and it was decided that they should be redeemed on 2 January 2011. In order to provide the necessary funds for the redemption, the short-term investments were sold for N1,600,000.
Required:
Prepare journal entries, necessary ledger accounts, and the Statement of Financial Position after the transaction has been completed.
Find Related Questions by Tags, levels, etc.
- Tags: Financial Statements, Preference shares, Redemption, Share Premium
- Level: Level 1
- Topic: Accounting Concepts
- Series: NOV 2012
Report an error
- 15 Marks
FA – Nov 2012 – L1 – SB – Q3 – Accounting Concepts
Prepare journal entries, ledger accounts, and a revised statement of financial position after the redemption of preference shares.
Question
Josephine Limited has an Authorized share capital of 15,000,000 Ordinary Shares of N1 each and 2,000,000 5% Redeemable Preference Shares of N1 each. The Statement of Financial Position of the company as at 31 December 2010 is as follows:
The preference shares are redeemable at N1.10 per share, and it was decided that they should be redeemed on 2 January 2011. In order to provide the necessary funds for the redemption, the short-term investments were sold for N1,600,000.
Required:
Prepare journal entries, necessary ledger accounts, and the Statement of Financial Position after the transaction has been completed.
Find Related Questions by Tags, levels, etc.
- Tags: Financial Statements, Preference shares, Redemption, Share Premium
- Level: Level 1
- Topic: Accounting Concepts
- Series: NOV 2012
Report an error
