CA Test Series
Respected sir/madam,
I have a doubt in chapter "Redemption of preference shares" problem in RTP May 2022 (problem no.7) where it is said that balance in profit and loss a/c should be maintained at 1,00,000. Here, shouldn't we deduct 200000 out of 300000 from Face value of the preference shares to be redeemed to arrive at number of equity shares? Instead, it is given in the suggested answer that 1,00,000 should be deducted to arrive at such answer which I don't understand why it is done that way. Hoping my question will be answered.
Thank you.
