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PLEASE SOLVE MY QUESIOTN - I NEED URGENT SOLUTION

GAURAV TIWARI (CA FINAL STUDENT) (105 Points)

25 July 2011

Ledget of A Ltd is as follows:

14% Pref. Share Capital Rs. 3,00,000

Securities Premium Rs. 20,000

Investement allowance reserve Rs. 50,000

G/R Rs. 80,000

P/L A/c Rs. 38,600

The company redeems prefernce share at a premium 10% by issue of equity shares of Rs. 10 each at a premium of 20%. Fresh Issue is made on multiple of 100 shares for such amount as is necessary after utilizing the available sources of the max. extent

Calculate Number of fresh shares issued and the amount transferred to Capital Redemption Reserve...

PLEASE SOLVE THIS I NEED URGENT SOLUTION...

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3 Replies

bhushan sachdeva (ca final student) (73 Points)
Replied 25 July 2011

Amount of shares to be issued

face value of preference shares to be reedemed= Rs300000

Less : General Reserve = Rs 80000

Amount of Equity shares to be issued = Rs 220000

No of shares = 220000/10= 22000 Shares

Security Premium = Rs. 22000*2= Rs44000

Amount to be transfered to Capital Redemption reserve = Rs80000

GAURAV TIWARI (CA FINAL STUDENT) (105 Points)
Replied 25 July 2011

Thanks for the solution..

My doubt is this, can i transfer the amount to Capital Redumption resert from G/R and P/L A/c to the extent available

Ayesha Sharma (student) (21 Points)
Replied 23 September 2011

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