(Solved by Humans)-ZZ redeemed their redeemable preference shares with a cash payment, paying a premium of 20 per ce

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Academic Level: Undergrad. (yrs 3-4)

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ZZ redeemed their redeemable preference shares with a cash payment, paying a premium of 20 per cent. Nominal value of shares redeemed$70,000Cash paid on redemption$84,000How much should be transferred to the capital redemption reserve (CRR) and how much should be charged to distributable reserves?  CRRDistributable reserves(A)$70,000$14,000(B)$84,000$84,000(C)$70,000$84,000(D)$84,000$70,000Ordinary shares are usually classified as:(A) Equity shares(B) Non-equity shares(C) Loans(D) Deferred shares 

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This question was answered on: 10 May, 2025

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(Solved by Humans)-ZZ redeemed their redeemable preference shares with a cash payment, paying a premium of 20 per ce


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