A company having free reserves of 1,20,000 wants to redeem 4,00,000 preference shares. Calculate the face value

Question:

A company having free reserves of ₹1,20,000 wants to redeem ₹4,00,000 preference shares. Calculate the face value of fresh issue of shares of ₹10 each to be made at a premium of 10%.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Corporate Accounting

ISBN: 9789353160739

1st Edition

Authors: Anita Raman, P. Radhika

See More Books

Question Posted: Aug 31, 2023 04:47 AM

See More Questions

Determine the transfer function from U(s) to Y(s) for the following block diagram. Provided are some recommended steps to take: a. Label each signal (line with arrow) b. Write the equation for each...
You are the newly appointed auditor of Utopia Ltd and have been presented with this statement of financial position: Utopia Ltd NOTES TO THE FINANCIAL STATEMENTS OF 30 SEPTEMBER 20x6 1 Accounting...
The draft statement of financial position of Telin plc at 30 September 20X5 was as follows: Preference shares of the company were originally issued at a premium of 2p per share. The directors of the...
A projectile launcher fires a marble of mass 2 5 grams perfectly vertical. The launcher uses a spring with a constant, k , of 6 0 . 0 Newtons / meter . If the spring is depressed 1 5 centimeters and...
Arlene is a lawyer. She begins the current year with $12,000 in accounts receivable from customers. During the year, she bills customers $210,000 in fees and receives $180,000 in payments on account....
In testing the independence of two variables described in a contingency table, determine the critical value of chi-square if the test is to be conducted at the a. = 0.05 level and df = 3 b. = 0.01...
Craxton Engineering will either purchase or lease a new $756,000 fabricator. If purchased, the fabricator will be depreciated on a straight-line basis over seven years. Craxton can lease the...
As a senior analyst for the company you have been asked to evaluate a new IT software project. The company has just paid a consulting firm $100,000 for a test marketing analysis. After looking at the...
Operating systems and application programs play vital role in our daily usage of computers. Differentiate between an operating system and an application program give examples each.
If ______ shares are issued for the purpose of redemption of preference shares, it will not be treated as increase of capital.
The summarised balance sheet of Gaur Ltd. on December 2004 was as follows: On the above date, the preference shares were redeemed at a premium of 10%. You are required to pass journal entries and...
Identify the area of the periodic table in which you would expect to find each of the following types of elements. (a) A metal, (b) A nonmetal, (c) A metalloid
Which of the following is not included in the GRI Framework on Sustainability? a. Labor practices and decent work b. Human rights c. Product responsibility d. Corporate governance
Harley Ltd., a manufacturer of motorcycles located in Burnaby, B.C., successfully negotiated a contract to sell 100 small motorcycles to the police department of Fairbanks, Alaska. The contract price...
Restructuring the mudaraba contract: Hussain enters into a mudaraba agreement with Hasan, who will be the mudharib. The terms of the agreement are as follows: a. Hasan gets $4,000 monthly salary,...
Othman al Habshi needs $50,000 for his sons wedding. He decided to seek Islamic financing using tawarruq financing from Bank Islam of Yemen with a term of 10 years. If the bank uses a 7% compound...
How can social publishing, along with SEO and SMO, help to meet marketing objectives?
We talked about concurrent engineering as an alternative to sequential development. What are the advantages of concurrent engineering? Under what circumstances might sequential development be...
For the following exercises, write the polynomial function that models the given situation. Consider the same rectangle of the preceding problem. Squares of 2x by 2x units are cut out of each corner....
Two companies buy identical computer equipment. The large company writes it off immediately, but the smaller company treats it as a fixed asset. Which accounting concept are the companies applying?...
Cash equivalents are held A. For investment purposes B. For the purpose of meeting short-term cash commitments C. For other purposes
A very large company has prepared financial statements without including very small items of furniture in its fixed assets. What accounting concept has the company applied? A. Prudence B. Consistency...
Match the following..... Question 6 options: 43 46 44 85 40 67 22 20 18 42 14 1. RPP contributions - Includes past service contributions. See line 20700 in your tax guide 2. Employment commissions -...
You run a sales business with mostly variable expenses and are considering providing a bonus to your employees. You believe this bonus will increase sales since you'll have a more motivated...
draft should conform a will for Your client, Mary Louise Smith is a 48 year-old widowed, female with three children. Her children are as follows: Beth Smith (26 years old) is the daughter of Mary and...

A company having free reserves of 1,20,000 wants to redeem 4,00,000 preference shares. Calculate the face value

Question:

Step by Step Answer:

To calculate the face value of the fresh issue of shares we need to determine the number of shares t...View the full answer

Corporate Accounting

Students also viewed these Business questions