State with reasons, whether the following statements are true or false: A concern proposes to discontinue its business from December, 2023 and…

Redemption of Preference Shares In the books of Sushil Limited Journal Entries Date Particulars Dr. (₹) Cr. (₹) Bank A/c Dr. 8,00,000 To Equity Share Capital A/c 8,00,000 (Being the issue of80,000 equity shares of 10each at par as per Board’s resolution No……dated…..) Bank A/c Dr. 4,00,000 To 12% Debenture A/c 4,00,000 (Being the issue of4,000 Debentures of 100each as per Board’s Resolution No…..dated……) 10% Redeemable Preference Share Capital A/c Dr. 10,00,000 Premium on Redemption of Preference Shares A/c Dr. 1,00,000 To Preference Shareholders A/c 11,00,000 (Being the amount payable on redemption transferred to Preference Shareholders Account) Preference Shareholders A/c Dr. 11,00,000 To Bank A/c 11,00,000 (Being the amount paid on redemption of preference shares) Profit & Loss A/c Dr. 1,00,000 To Premium on Redemption of Preference Shares A/c 1,00,000 (Being the adjustment of premium on redemption against Profits & Loss Account) Profit & Loss A/c Dr. 2,00,000 To Capital Redemption Reserve A/c (Working Note) 2,00,000 (Being the amount transferred to Capital Redemption Reserve Account as per the requirement of the Act) Working Note: Amount to be transferred to Capital Redemption Reserve Account Face value of shares to be redeemed - 10,00,000 Less: Proceeds from new issue (₹ 8,00,000) Balance - 2,00,000