Hi
I need to know the accounting treatment for following situation:
Authorised Capital 20,00,000/-
Existing Issued and paid up capital Caiptal 10,00,000/- with 100% holding with promotors
Investor investing say 40,00,000/- with 5% holding in Company
i.e. Rs. 50,000/- towards Share Capital and balance amount is Share Premium
So the new Capital Holding would be
95% Promotors with 10,00,000/-
5% New Investor 50,000/-
How to determine no. of shares in revised Holding Patttern
Can the premium be as high as the balancing amount i.e. 39,50,000/-
Reply ASAP
Thanks
Hema