The Balance Sheet of A ltd as on 31.3.11 is as follows
Liabilities-Eq.shares of Rs.10/- each fully pd up-1500000/-,12% pref sharesof Rs.100/- each fully pd -1200000/- , Gen Reserve-800000/-, P& L a/c-500000/- , Share premium-50000/- , Sundry creditors-250000/- Total of liabilities-4300000/-
Assets-Sundry Assets-3500000/-, Investments-500000/-, Cash at bank-300000/- Total of Assets-4300000/-
The Board Of Directors decided to redeem the pref shares at a premium of 10%. In order to facilitate the redemption, the Board has taken the following decision:
-to sell investments for Rs.600000/- ,
-to issue sufficient no. of eq. shares at a premium of Rs.2/- per share to raise the balance funds needed
-to maintain minimum bank balance of Rs.102000/-.
The no. of equity shares to be issued will be how much??
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