SHARE CAPITAL

This query is : Resolved

SAHIL (Querist)
Follow

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)
Follow

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)
Follow

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)
Follow

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"

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

George Innocent

SUBHASH SAHA

Narendra

Krishnaveni karur

KRK

Subscribe Now

SHARE CAPITAL

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Senior Executive

Manager- Finance and Compliance

CA Final

Accountant

GST CONSULTANCY