Model: Issue of bonus shares Sunderraj Ltd. issued 10,000 8% redeemable preference shares of Rs.100 each at par on 1 July 2003, redeemable at the option of the company on or after 30 June 2009 partly or fully.
Redemptions were made out of profits as follows:
- 2,000 Shares on 30 June 2009 at par
- 2,500 Shares on 31 December 2009 at 10% premium
- Remaining shares on 30 June 2010 at a premium of 5% making a fresh issue of 4,000 equity shares of Rs.100 each at a premium of 10% On 30 June 2010,the company also decided to capitalize 50% of its capital redemption reserve by issuing bonus shares of Rs.10 each fully paid at a premium of Rs.2 per share.
Pass necessary journal entries to record the above transactions in the books of the company.