Following items appear in the Trial Balance of Saral Ltd. as on 31st March, 2014
|
Particulars |
Amount (`) |
|
4,500 Equity Shares of ` 100 each Capital Reserve (including ` 40,000 being profit on sale of plant ) Securities Premium Capital Redemption Reserve General Reserve Profit and loss account (Cr. Balance ) |
4,50,000
90,000 40,000 30,000 1,05,000 65,000 |
The Company decided to issued to equity shareholders bonus shares at the rate of 1 share for every shares held. Company decided that there should be the minimum reduction in free reserves. Pass necessary Journal Entries in the book Saral Ltd.
This 4 marks question had appeared in May 14 IPCC exam and as regards capital reserve I used Rs.50000 and not Rs.40000 which should have been used.So is it possible that I may get marks if the moderatior thinks that Rs.40000 is not cash profit?Thanks in advance for helping
CAclubindia
