urgent -Capital redemption reserve

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Hi dear all!

Please tell me what are the use of Capital Redemption Reserve created after redemption of Redeemable prefernce shares ?

Book which I generally refer mention that Co. can use CRR for the purpose of bonus issue and redemption of redeemable preference shares, In that case if I utilised CRR for further redemption then what will be accounting entries in that regard ?does that ean I need not require further CRR at the time of next redemption ?

Please clarify my doubts at the earliest

Thanks  and regards

Replies (2)

U can utilise the CRR balance for writing off the premium on redemption of preference shares.. Instead of debiting P/L, U can dr CRR

Thanks, Pravin sir


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