Premium on redemption of preference shares
This query is : Resolved
Manoj Mangal
(Querist)
07 November 2008
A Public ltd. co. has issued 9% Non-Cum, optionally convertible Pref. shares, which is redeemable at 15% premium after 10 years.
The co.has started commercial production in 2007-08,so there is no profit in current year & no balance of accumulated reserves.
In the current year (2007-08), what will be accounting treatment in respect of Premium on remption of pref. shares.
The co.has started commercial production in 2007-08,so there is no profit in current year & no balance of accumulated reserves.
In the current year (2007-08), what will be accounting treatment in respect of Premium on remption of pref. shares.
S.Srinivasaraghavan
(Expert)
07 November 2008
Nothing.
Manoj Mangal
(Querist)
07 November 2008
Why not 1/10 amount of premium on redemption on pref. shares should be charged through profit & loss A/c in current year?
Pl. explain in detail .....
Pl. explain in detail .....
S.Srinivasaraghavan
(Expert)
08 November 2008
When there is no profit how and where from will you appropriate?
Manoj Mangal
(Querist)
08 November 2008
Thanks a Lot
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