Question
A company has ₹10,00,000 10% Redeemable Preference
Shares. These are redeemed at 10% premium out of fresh equity issue of ₹6,00,000 and balance from reserves. The company’s Securities Premium A/c has ₹50,000. How much should be transferred from General Reserve to Capital Redemption Reserve (CRR)?Solution
Total redemption = ₹10,00,000 + 10% premium = ₹11,00,000. Fresh issue = ₹6,00,000 → balance = ₹4,00,000 from reserves. Hence, CRR = ₹10,00,000 – ₹6,00,000 = ₹4,00,000. • CRR is calculated based on the face value redeemed from reserves. Premium is handled separately (from Securities Premium A/c).
What is the core purpose of Tamil Nadu’s 'Ungaludan Stalin' initiative starting on July 15, 2025?
When is the Z-Morh tunnel, connecting Kashmir and Ladakh, scheduled to be inaugurated?
What is the new Cash Reserve Ratio (CRR) announced by the RBI to be achieved by December 2025?
Which of the following Indian sites was NOT included among the seven recently added to UNESCO’s Tentative World Heritage List?
What is the primary objective of China’s newly approved deepwater research facility in the South China Sea?
Which bank became the first in the private sector to integrate Unified Payments Interface (UPI) and National Common Mobility Card (NCMC) features in RuP...
What was India’s rank in the 2025 Global Digital Competitiveness Index released by IMD?
Under the revised rules, the government can revoke Overseas Citizen of India (OCI) cards if the holder is sentenced to imprisonment of how many years or...
What was the theme of the 2024 G20 Summit held in Brazil?
Which of the following minsitry of India is participating in the 41st Sharjah International Book Fair, one of the most acclaimed book fairs of the world?
