Pls. solve this question - Need help

Fresh no of equity share to be issued are 10200 shares n Rs. 10000 to be transferred to capital redemption reserve..i guess

Number of Fresh Shares Issued

Preferences share capital to be redeemend                 =Rs. 3,00,000

Premium on redemption of P/S                                         =Rs.    30,000

Balance in general reserve    (a)                                       = Rs.    80,000

Profit & loss Account balance    (b)                                   = Rs.    38,600

Profit available for redemption     (a + b)                           =Rs. 1,18,600

Fresh issue of equity shares to be made

for redemption (Rs.3,00,000 - Rs.1,18,600)                    =Rs. 1,18,400

Face value of equity shares is Rs. 10

Number of equity shares to be issued                             =             18,140

Since equity shares are to be issued in lots of

100 , hence the fresh issue of equity shares

should be                                                                               =             18,200

Note:- Investment allowance reserve is not a free reserve and hence not available for redemption of preference shares.

Entry:-

Profit & loss       A/c                                                    Dr.  38,600

General reserve A/c                                                   Dr.  80,000

             To Capital Redemption Reserve A/c                                      1,18,600

(Being transfer of profit to capital redemption reserve for redemption of preference shares)