[mikel]

we were given this as a research topic by our lecturer.what we were only told was that the share premium was to be only used on redeeming debentures at a premium and again when redeeming preference shares at a premium without the issue of new shares to finance the redemption, the share premium account shall not be charged. Now my question is what happens when redeeming preference shares at a premium being financed by an issue of equity shares issued at a premium.does the premium on equity shares help to finance the redemption of preference shares.

[mikel]

iam not studying acca but iam an accountant student and the topic is in my syllabus.i need help.

[Author]

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