Book value of shares

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Vinit Garg (Querist)
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11 October 2011 hello experts

Please tell me if i want to calculate book value of equity share of a company and company have preference share holder also who will be redeemed on premium of Rs.450/- over and above face value then i will have to deduct face value plus premium value from assets? i think
book value of all assets - (fictitious assets + all liability + preference share holder value inclusive premium)
am i right?

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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11 October 2011 You are right as Premium on redemption of Preference share is also fictitious asset and will also be deducted, no need to mention it as seperate item

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Vinit Garg

Vinit Garg (Querist)
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11 October 2011 friend I am not talking about fictitious assets actually i want to know whether premium which is payable at the time of redemption on preference share holder is also deductible for calculation of book value of equity share?

CA.E.Deepan Chakravarthy

CA.E.Deepan Chakravarthy (Expert)
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11 October 2011 You are right.
Total Asset - Liabilities other than equity and R&S.
otherwise, Total Asset excluding fictitious asset - Liabilities other than equity and R&S.

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