MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Issue of Shares at Premium

AB limited ha...

Question

AB limited has issued 5,000 shares of face value of Rs.10 each at Rs.15 each, the amount to be debited in bank account is if received in full.

A

Rs. 5,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Rs. 10

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Rs. 75,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

Rs. 5

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Rs. 75,000
Amount debited to the bank account includes the premium value =
5,000 * Rs. 15 = Rs. 75,000

Suggest Corrections

thumbs-up

1

Similar questions

Q. AB limited has issued 5,000 shares of face value of Rs. 10 each at Rs. 15 each, the amount of premium per share is .

3, 000

12 %

Redeemable preference shares of Rs.

100

each, fully paid up. The company issued

25, 000

equity shares of Rs.

10

each at par and

1, 000

14 %

100

each. All amounts were received in full. The payment was made in full. The amount to be transferred to capital Redemption Reserve Account Rs _________.

Q. Ajay Ltd. decided to redeem 10,000 Preference shares of Rs. 10 each at 10% premium. Balance in profit & loss account is Rs. 65,000 and in securities premium accountis Rs. 5,000. You are required to calculate the minimum number of equity shares to be issued for the purpose of redemption if new equity shares are to be issued at 20% premium having face value of Rs. 10 each.

Q. A limited company has to redeem redeemable preference shares of the value of Rs. 1,00,000 for which the company has issued 3,000 equity shares of Rs. 10 each at a premium of 10%. The amount to be transferred to capital redemption reserve account will be ___________.

Q. A limited company has to redeem redeemable preference shares of the value of Rs.

1, 00, 000

for which the company has issues

3000

equity shares of Rs.

10

each at a premium of

10 %

. The amount to be transferred to capital redemption reserve account will be.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Issue of Shares at a Premium or a Discount

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Issue of Shares at Premium

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon