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journal entry

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 sk.uzma sadia asked over 3 years ago

what is entry for convertion of preference shares by cancelling surrender shares and issue of preference shares to debenture holders

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 karishma answered over 3 years ago

Hi, The journal entry for cancellation of surrender shares is Preference share capital a/c ......dr To Capital reserve a/c and the journal entry for debenture issue is 1.At the time of resolution Debenture a/c ......dr To Debenture holder a/c 2.At the time of distribution Debenture holder a/c......dr To Preference share capital a/c Hope this helps you Thank You

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 paresh kasala answered over 3 years ago

For cancellation of surrender share.. Preferance share capital A/c dr. To capital reserve a/c Where as issue of shares to deb. Debenture a/c dr. To debenture holder a/c (at time of resolution) Debenture holder a/c dr. To preferance share capital a/c (at time of distribution)

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