SHARE CAPITAL

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This query is : Resolved

SAHIL (Querist)

18 August 2010 IF ANY PUBLIC LTD. LETS SAY HAVE AUTHORISED SHARE CAPITAL OF Rs.10,00,000 and THEY ALREADY ISSUED EQUITY SHARE CAPITAL OF Rs.8,00,000 with 80,000 of Rs.10 PER SHARE. AFTER 2 YEARS THEY WANT TO ISSUE MORE SHARES WITH Rs.36 per share i.e.3.6 times MORE THAN FACE VALUE PRICE.
MY QUERY IS THIS DIFF.i.e. Rs.26 will be treated as PREMIUM AND WHAT WILL BE THE COMPOSITION OF BALANCE SHEET AFTERWARDS.
will the face value in balance sheet remain at Rs.10 per share or Rs.36 per share.

Aditya Maheshwari

Aditya Maheshwari (Expert)

18 August 2010 Share capital under paid up capital will be credited by Rs. 10 the face value and securities premium under reserves & surplus will be credit by Rs. 26 per share.

Face value will be Rs. 10 only.

CA Sanat Pyne

CA Sanat Pyne (Expert)

18 August 2010 yes Rs. 26 will be treated as security premium and it will be shown in the balance sheeet as security premium under reserve & surplus.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)

18 August 2010 AGREED WITH EXPERTS.
AMOUNT IN EXCESS OF FACE VALUE OF SHARE WILL BE TREATED AS SHARE PREMIUM. IT WILL BE SHOWN IN SEPRATE ACCOUNT "SHARE PREMIUM A/C"

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