03 December 2016
Sir, kindly provide a solution for the following problem-
H Ltd acquired 15000 shares of A Ltd on 31.05.2010, as on 01.4.2010 securities premium of A Ltd was 10,00,000. Profit for the year 2011 was 4500.
My querry is-
1. Whether securities premium will be included in pre acq profit.
2. If i include such figure in pre acq profit, capital reserve is created of huge amount which ultimately reduces my investment value n makes it negative, but my net worth is positive so my investment should also be positive.