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Corporate Accounting Redemption of Preference Shares

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For recording the redemption of preference shares in the books of company who issued the shares, we see whether these preference shares are fully paid or not. Only fully paid up shares can be redeemed. In redemption, we repay the amount of preference shareholders. Following are the main journal entries which are passed for redemption of preference shares.


1. When preference shares are due on the maturity date with its premium amount. At that time, we will pass following journal entry. 

Redeemable preference share capital account Dr. ( With face value)
Premium on Redemption Account Dr. ( with the premium to be paid on redemption )
Preference Shareholders Account or Preference Share Redemption Account Credit 
Understanding of this Journal Entry :

Main aim of debiting redeemable preference share capital account is to reduce this capital from business. When any capital is reduced from business it will be debited when any capital is increased, it will be debited. In previous post, I told that c…

Questions and Answers on Cyber crime

1. What is Cybercrime? A. Cybercrime refers to all the activities done with criminal intent in cyberspace. Because of the anonymous nature of the internet, miscreants engage in a variety of criminal activities. The field of cybercrime is just emerging and new forms of criminal activities in cyberspace are coming to the forefront with each passing day. 2. Do we have an exhaustive definition of Cybercrime? A. No, unfortunately we don’t have an exhaustive definition of cybercrime. However, any online activity which basically offends human sensibilities can be regarded as a cybercrime. 3. What are the various categories of Cybercrimes? A. Cybercrimes can be basically divided into three major categories − Cybercrimes against persons,Cybercrimes against property, andCybercrimes against Government.4. Tell us more about Cybercrimes against persons. A. Cybercrimes committed against persons include various crimes like transmission of child pornography, harassment using e-mails and cyber-stalking. Post…

Offences under IT Act 2000

The following table shows the offence and penalties against all the mentioned sections of the I.T. Act − SectionOffencePunishmentBailability and Congizability65Tampering with Computer Source CodeImprisonment up to 3 years or fine up to Rs 2 lakhsOffence is Bailable, Cognizable and triable by Court of JMFC.66Computer Related OffencesImprisonment up to 3 years or fine up to Rs 5 lakhsOffence is Bailable, Cognizable and66-ASending offensive messages through Communication service, etc...Imprisonment up to 3 years and fineOffence is Bailable, Cognizable and triable by Court of JMFC66-BDishonestly receiving stolen computer resource or communication deviceImprisonment up to 3 years and/or fine up to Rs. 1 lakhOffence is Bailable, Cognizable and triable by Court of JMFC66-CIdentity TheftImprisonment of either description up to 3 years and/or fine up to Rs. 1 lakhOffence is Bailable, Cognizable and triable by Court of JMFC66-DCheating by Personation by using computer resourceImprisonment of ei…

sales quotas types, methods etc Advertising students B Com Hon Final yr

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Sales QuotaAny kind of sales figures given to any particular person or region or distributor is called Sales Quota. It can be measured either in terms money or the stock of goods sold. It is particularly an amount of target sales that is assessed on daily or monthly basis. To assess the performance of an individual sales person, his/her ability is looked to meet the given target. Types of Sales Quotas:This can include many things from cold calling, Marketing emails, advertisements, invitation to executives for events and many more things. It’s always in the interest of the sales team as to how they should get the stuff out. 1. Sales volume quota: This always includes sales in monetary terms or units sold for a specific period of time. This type of sales quotas is always set for a given year. The sales teams are then assigned their yearly quotas to be accomplished. These quotas are set in the areas mentioned below: (i). Product line (ii). Product range (iii). Branch offices (iv). Individual …