sk.uzma sadia
asked
what is entry for convertion of preference shares by cancelling surrender shares and issue of preference shares to debenture holders
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karishma
answered
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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paresh kasala
answered
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)
