Redemption of Preference Shares One Shot | Full Revision | CMA Inter Group 2 Corporate Accounting

Redemption of Preference Shares One Shot Revision for CMA Inter Group 2 — Paper 10 Corporate Accounting. This video covers ALL concepts of Redemption of Preference Shares from scratch along with important questions asked in previous exams, so you can revise the entire chapter in one sitting before your exam. 📚 What you'll learn in this One Shot: ✔ Meaning and types of Preference Shares (Redeemable vs Irredeemable) ✔ Legal provisions under the Companies Act relating to Redemption ✔ Conditions for Redemption of Preference Shares ✔ Sources of Redemption — Fresh Issue of Shares, Free Reserves (Divisible Profits) ✔ Concept and calculation of Capital Redemption Reserve (CRR) ✔ Premium on Redemption — sources and accounting treatment ✔ Journal entries for Redemption out of Fresh Issue ✔ Journal entries for Redemption out of Profits ✔ Journal entries for Redemption partly out of Fresh Issue and partly out of Profits ✔ Minimum Fresh Issue calculation (Nominal Value Method) ✔ Balance Sheet treatment after Redemption ✔ Important & exam-oriented questions with step-by-step solutions ✔ Common mistakes students make in this chapter and how to avoid them 👨‍🏫 Taught by: Abhimanyyu Agarrwal 📖 Course: CMA Intermediate Group 2 📄 Paper: Paper 10 – Corporate Accounting 🙋 Frequently Asked Questions: Q1. What is redemption of preference shares? A. Redemption of preference shares refers to the repayment of the amount due on redeemable preference shares to shareholders by the company, as per the terms of issue and subject to conditions laid down in the Companies Act. Q2. What is Capital Redemption Reserve (CRR)? A. Capital Redemption Reserve is a statutory reserve created out of divisible profits when preference shares are redeemed otherwise than out of the proceeds of a fresh issue of shares, and it can only be used for issuing fully paid bonus shares. Q3. Can preference shares be redeemed out of capital? A. No, preference shares can only be redeemed out of the proceeds of a fresh issue of shares or out of the profits of the company otherwise available for dividend, and not out of capital directly. Q4. Is Redemption of Preference Shares an important chapter for CMA Inter Group 2? A. Yes, this is one of the most frequently tested practical chapters in CMA Inter Paper 10 Corporate Accounting, with CRR and minimum fresh issue calculations appearing almost every attempt. Q5. How to revise Redemption of Preference Shares quickly before exams? A. Watch this one-shot video which covers all concepts, journal entries, and important questions in a single structured session for fast revision. ⏱ Timestamps: 00:00 Why Redemption of Preference Shares is a Scoring Goldmine in Paper 10 00:20 Concept 1: Section 55 Conditions & Basics of Redemption 07:10 Accounting Entries for Redemption at Par & Premium 12:20 Minimum utilisation of Reserve 13:00 Tricky Adjustment: Minimum Fresh Issue Calculation 14:40 Fully paid Preference share 17:42 Important Question Type 1 31:27 Important Question Type 2 43:20 If Fresh issue is not fully paid 44:28 Issue of share for arrangement of cash shortage 46:55 Important Question Type 2 (cash shortage) 🔔 Subscribe for more One Shot Revisions of CMA Inter Group 1 & Group 2 — Financial Accounting, Corporate Accounting & more, only on this channel! Disclaimer: This video is for educational purposes to help CMA Intermediate students revise for their exams. 📚 Join Our CMA Intermediate Classes 👉 Modes: Face-to-Face (Kolkata), Live Online, Google Drive, and Pendrive 📲 Follow for updates: 📞 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩: / 🌐 𝐕𝐢𝐬𝐢𝐭: ‎🌐 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩 𝐂𝐡𝐚𝐧𝐧𝐞𝐥: 🌐 𝐓𝐞𝐥𝐞𝐠𝐫𝐚𝐦: 🌐 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦: #CMAInter #RedemptionOfPreferenceShares #CorporateAccounting #CapitalRedemptionReserve #CMAInterGroup2 #CMAIntermediate #OneShotRevision #cmaexams #CMAInterPaper10 #ICMAI