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Reduction of share Capital

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(Querist)
08 August 2009 A company has reduced its share capital
and as reduced the no of shares A shareholder possessing 1900 shares were reduced to 95 shares so what will be the cost of 95 shares if the shareholder is selling that 95 shares
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M Prabhakar Menon

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M Prabhakar Menon (Expert)
08 August 2009 There is no need to pass any entry as there is no transaction to be recorded. Increase/decrease in value is not a transaction When the shares are sold only you can account for the profit/loss on sale of investments
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
08 August 2009 agree
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