S Ltd. issued 2,000, 10% Preference shares of Rs.100 each at par, - TopicsExpress

S Ltd. issued 2,000, 10% Preference shares of Rs.100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 Equity Shares of Rs.100 each at a premium of 20% per share. At the time of redemption of Preference Shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be (a) Rs.50,000 (b) Rs.40,000 (c) Rs.2,00,000 (d) Rs.2,20,000

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