plz tell me whethed my answers is correct.....correct me if im wrong..
On 31st march,2008 following was the balance sheet of new era ltd.
(Rs. in lakhs)
LIABILITIES RS ASSETS RS
equity share capital(fully paid up 2400 investments 148
shares of rs.10 each) cash 740
Securities premium 350
General reserve 930
P&L a/c 340
12% debentures 1500
S. crs. 750
S. provisions 390
On 1st april 2008 the company announced buy back of 25% of its shares @ 15 per share. For this purpose it sold all of its investments for rs.150 lakhs and issued 2,00,000. 14% pref. shares of Rs.100 each at par, the entire amt. being payable with application.
The issue was fully subscribed. The company acheived the target buy back. Later the company issued one fully paid up equity shares of Rs.10 by way of bonus shares for every four shares held by the equity shareholders. show journal entries.
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