Given below are the extracts of Balance Sheet of Surya Chemicals Limited as on 31st March, 2026: Particulars Amount in ₹ 7% Redeemable Preference…

In the books of Surya chemicals Ltd. Journal Entries ₹ ₹ 7% Preference Share Capital A/c Dr. 3,00,000 To Calls in Arrears A/c 60,000 To Shares Forfeited A/c 2,40,000 (For Shares Forfeited because of non-payment of calls as holders are unknown) Bank A/c (Refer W N) Dr. 6,00,000 To Equity Share Capital A/c 6,00,000 (Being the issue of 60,000 Equity Shares of ₹ 10 each at par as per Board's Resolution No....dated....) General Reserve A/c Dr. 21,00,000 To Capital Redemption Reserve A/c 21,00,000 (For transfer to CRR for the amount not covered by the proceeds of fresh issue of equity shares) 7% Preference Share Capital A/c Dr. 27,00,000 To Preference Shareholders A/c 27,00,000 (For amount payable to preference shareholders) Preference Shareholders A/c Dr. 27,00,000 To Bank A/c 27,00,000 (For amount paid to preference shareholders) Working Note: Number of Shares to be issued for redemption of Preference Shares: Face value of shares redeemed 27,00,000 Less: Profit available for distribution as dividend: General Reserve 21,00,000 6,00,000 Therefore, number of shares to be issued = ₹ 6,00,000/ ₹ 10 = 60,000 shares.