whenever there are calls in arrear in case of redemption of preference shares, then do we provide the arrangement for the redemption of those shares also so that whenever calls are recieved, redemption can be done easily?
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Redemption of preference shares
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actually i am confused while doing questions because in some questions arrangements are made for their redemption and in some arrangements are not done.....what to do in such case
in case of redemption of preference shares arrengement can be made by issue of fresh issue.
wen calls in arrears given, in some question calls in arrears are recieved and on remaining shares are forfieted.
for redemption of Preference share fresh issue are used for arrangement if question gives or by creating CRR- Capital Redemption Reserve.. Keywords are- Divisible Profits- general Reserves & Profits / loss a/c
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