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Shubh Limited has the following balances appearing in its Balance Sheet: `{:("Securities Premium Reserve",,Rs.,"22,00,000"),("9% Debentures",,Rs.,"1,20,00,000"),("Underwriting Commission",,Rs.,"10,00,000"):}` The company decided to redeem its 9% Debentures at a premium of 10%. You are required to suggest the ways in which the company can utilise the securities premium amount. |
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Answer» (i) Utilise Rs. 10,00,000 to write off Underwriting Commission. (ii) Utilise balance Rs. 12,00,000 to write off Premium on Redemption of 9% Debentures. |
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