Redemption of Preference Shares – Numerical

1. Rs. 5,00,000 Preference shares are redeemed by issue of 2,000 equity shares @ 100 Rs. each for Rs. 125 each, then CRR is to be created by what amount?
   (a) 3,00,000
   (b) 2,50,000
   (c) 2,00,000
   (d) 5,00,000
2. Redeemable preference shares of Rs. 1,00,000 are redeemed at par for which fresh equity shares of Rs. 80,000 are issued at discount of 10%. The amount transferred to capital Redemption Reserve will be:
   (a) Rs. 20,000
   (b) Rs. 28,000
   (c) Rs. 1,00,000
   (d) Rs. 80,000
3. Redeemable preference shares of Rs. 1,00,000 are redeemed at par for which fresh equity shares of Rs. 80,000 are issued at par. The amount transferred to capital Redemption Reserve will be:
   (a) Rs. 20,000
   (b) Rs. 28,000
   (c) Rs. 1,00,000
   (d) Rs. 80,000
4. Redeemable preference shares of Rs. 1,00,000 are redeemed at par for which fresh equity shares of Rs. 80,000 are issued at premium of 10%. The amount transferred to capital Redemption Reserve will be:
   (a) Rs. 20,000
   (b) Rs. 28,000
   (c) Rs. 1,00,000
   (d) Rs. 80,000
5. Following are details of ABC Ltd:
   Outstanding redeemable preference shares = Rs. 3,00,000
   Premium on redemption = 10%
   General reserve = Rs. 1,50,000
   Security Premium Balance = Rs. 35,000
   Fresh issue of shares to be made at 10% discount.
   The face value of fresh issued share will be:
   (a) Rs. 1,66,667
   (b) Rs. 1,50,000
   (c) Rs. 1,85,000
   (d) Rs. 1,80,000
6. Following are details of ABC Ltd:
   Outstanding redeemable preference shares = Rs. 3,00,000
   Premium on redemption = 10%
   General reserve = Rs. 1,50,000
   Security Premium Balance = Rs. 10,000
   Fresh issue of shares to be made at 10% discount.
   The face value of fresh issued share will be:
   (a) Rs. 1,66,667
   (b) Rs. 1,44,444
   (c) Rs. 1,30,000
   (d) Rs. 1,88,888
7. Following are details of ABC Ltd:
   Outstanding redeemable preference shares = Rs. 3,00,000
   Premium on redemption = 10%
   General reserve = Rs. 1,50,000
   Security Premium Balance = Rs. 10,000
   Fresh issue of shares to be made at 10% premium
   The face value of fresh issued share will be:
   (a) Rs. 1,66,667
   (b) Rs. 1,44,444
   (c) Rs. 1,70,000
   (d) Rs. 1,50,000
8. A Ltd. had 3,000, 12% redeemable preference shares of Rs. 100 each, fully paid up. The company issued 25,000 equity shares of Rs. 10 each at par and 1,000, 14% debentures of Rs. 100 each. All amounts were received in full. The payments were made in full. The amount to be transferred to Capital Redemption Reserve Account Rs:
   (a) Nil
   (b) Rs. 2,00,000
   (c) Rs. 3,00,000
   (d) Rs. 50,000
9. A Company issued 10,000 equity shares of Rs. 10 each at a premium of 20% for the redemption of 15,000 preference shares of Rs. 10 each. If the company had sufficient profit, the amount transferred to capital redemption reserve would be:
   (a) Rs. 50,000
   (b) Rs. 1,00,000
   (c) Rs. 1,50,000
   (d) Rs. 30,000
10. X Ltd. had 5,000 12% Redeemable preference shares of Rs. 100 each. The company decided to redeem them by issuing share of Rs. 100 each @ a premium of 25%. The member of equity shares to be issued are:
    (a) 4,000 shares
    (b) 5,000 shares
    (c) 4,480 shares
    (d) 5,600 shares