The Rock Fort Ltd. issued 4,000 8% redeemable preference shares of Rs.100 each at par on 1 January 2004, redeemable at the option of the company on or after 31 December 2010,partly or fully.
Redemptions were made out of profits as follows:
- 600 shares on 31 December 2010 at par
- 800 shares on 31 March 2011 at 10% premium
- Remaining shares on 30 June 2011 at a premium of 5% by making a fresh issue of 2,000 equity shares of Rs.100 each at a premium of 10%On 30 June 2011, the company also decided to capitalize 50% of its CRR by issuing bonus shares ofRs.100 each fully paid at a premium of Rs.25 per share. You are required to pass the necessary journal entries in the books of The Rock Fort Ltd.