Redemption of Preference shares Complete Chapter | CA Intermediate Accounting | Chandan Poddar

In This Video We Will Discuss CA Intermediate Accounting "Redemption of Preference shares" all Concepts, Problems and Examples for CA Inter have been discussed by Chandan Poddar Sir for CA Intermediate Grooming Education. ⚫ 𝐂𝐀 𝐈𝐧𝐭𝐞𝐫 𝟑.𝟎 𝐁𝐨𝐭𝐡 𝐆𝐫𝐨𝐮𝐩 https://www.escholars.in/p/ca-interme... ⚫ 𝐂𝐀 𝐈𝐧𝐭𝐞𝐫 𝟑.𝟎: 𝐆𝐫𝐨𝐮𝐩 𝟏 https://www.escholars.in/p/ca-inter-g... ⚫ 𝐂𝐀 𝐈𝐧𝐭𝐞𝐫 𝟑.𝟎: 𝐆𝐫𝐨𝐮𝐩 𝟐 https://www.escholars.in/p/ca-inter-g... ⚫ 𝐂𝐀 𝐈𝐧𝐭𝐞𝐫 𝐈𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐂𝐨𝐮𝐫𝐬𝐞𝐬 https://www.escholars.in/store/ca-int... ⚫ 𝐂𝐀 𝐈𝐧𝐭𝐞𝐫 𝐒𝐮𝐠𝐠𝐞𝐬𝐭𝐞𝐝 𝐀𝐧𝐬𝐰𝐞𝐫𝐬 https://www.escholars.in/store/ca-int... ⚫ 𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐨𝐮𝐫 𝐄𝐬𝐜𝐡𝐨𝐥𝐚𝐫𝐬 𝐀𝐈 𝐀𝐩𝐩 https://play.google.com/store/apps/de... Watch Next:- ⚫ Investment Accounting:    • Investment Accounting | CA Intermediate Ac...   ⚫ PGBP Complete Chapter:    • PGBP Complete Chapter | CA Inter Taxation ...   ⚫ CA Inter Group 1 Chapterwise Weightage    • Video   Time Stamp: 0:00 Intro 0:07 Redemption of Preference Shares 1:50 Source of Redemption 6:06 Condition Related from Redemption of Preference Shares 23:20 Capital Redemption Reserve 42:52 Journal ISSUE AND REDEMPTION OF PREFERENCE SHARES ⚫ The company cannot issue irredeemable preference shares or redeemable preference shares with a redemption period beyond 20 years. ⚫ Section 55 (1) states that no company limited by shares shall issue any preference shares which are irredeemable. ⚫ Section 55(2) further states that a company limited by shares may, if so authorised by its articles, issue preference shares which are liable to be redeemed within a period not exceeding 20 years from the date of their issue subject to such conditions as may be prescribed. Exceptions Issue and redemption of preference shares by company in infrastructure projects A company engaged in the setting up and dealing with of infrastructural projects may issue preference shares for a period exceeding 20 years but not exceeding 30 years, (However redemption subject to minimum 10% of such preference shares per year from the twenty first year onward or earlier on proportionate basis, at the option of the preference shareholders) The term “infrastructure projects” means the infrastructure projects specified in Schedule VI. Other conditions attached Proviso to Section 55(2) states that Preference Shares shall be redeemed a) Out of divisible profits (Profits available for dividend) or b) Out of proceeds of fresh issue of shares Preference Shares shall be redeemed only if they are fully paid. Premium payable on redemption of preference shares shall be provided for (write off) :- a) Security Premium Reserve or b) Profits of the company When Preference shares are proposed to be redeemed out of the profits of the company, a sum equal to the nominal amount of the shares to be redeemed, should be transferred to Capital Redemption Reserve Account. Note: – The Capital Redemption Reserve shall be treated as the paid up share capital of the company for all purposes and can only be utilized for bonus issue of shares. Section 55 (3) states that If a company is not in a position to redeem any preference shares or to pay dividend, if any, on such shares in accordance with the terms of issue, it may, with the consent of the holders of 3/4th in value of such preference shares and with the approval of the Tribunal on a petition made by it in this behalf, issue further redeemable preference shares equal to the amount due, including the dividend thereon, in respect of the unredeemed preference shares. [Section 55(3)] CA Intermediate: Grooming education academy is engaged in providing qualitative commerce education to society at concessional prices. We believe in Research, reasoning and result and thus our learners admit our USP of: "Pioneer in developing concepts". We provide the complete tutorials for CA Intermediate. To know about the courses and books that best suits your requirement call at our helpline number: 𝟖𝟖𝟖 𝟖𝟖𝟖 𝟎𝟒𝟎𝟐 𝐕𝐢𝐬𝐢𝐭 𝐎𝐮𝐫 𝐖𝐞𝐛𝐬𝐢𝐭𝐞 to know more about the courses available: https://www.escholars.in/ 𝐉𝐨𝐢𝐧 𝐨𝐮𝐫 𝐭𝐞𝐥𝐞𝐠𝐫𝐚𝐦 𝐜𝐡𝐚𝐧𝐧𝐞𝐥 𝐟𝐨𝐫 𝐝𝐚𝐢𝐥𝐲 𝐮𝐩𝐝𝐚𝐭𝐞𝐬::: https://t.me/CAIntermediateGrooming 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐏𝐚𝐠𝐞:   / groomingeducationacademy   𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦 𝐏𝐚𝐠𝐞: https://www.instagram.com/groomingedu... 𝐓𝐰𝐢𝐭𝐭𝐞𝐫 𝐏𝐚𝐠𝐞:   / academygrooming   𝐋𝐢𝐧𝐤𝐞𝐝𝐈𝐧 𝐏𝐚𝐠𝐞:   / grooming-education-academy   𝐏𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐏𝐚𝐠𝐞: https://www.pinterest.de/groomingeduc... #CAIntermediate #Accounting #CAInterAccounts #Accounts #PrefrenceShare #Shares #ChandanPoddar