Sudha Ltd. has sold $1$ lakh equity shares of Rs. $10$ each at Rs. $12$ per share to an investment banker, who offered them to the public at Rs. $20$ each. Identify the method of flotation.

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Solution

Offer for sale.

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Sudha Lts. has sold 1 lakh equity shares of Rs.10 each at Rs.12 per share to an investment banker, who offered them to the public at Rs.20 each. Identify the method of floatation.

Q. Pass necessary journal entries in the following cases :
(i)

Z

Ltd redeemed

1500

12 %

debentures of Rs

100

each issued at a discount of

6 %

by converting them into equity shares of Rs

100

each issued at a premium of Rs

25

per share.
(ii)

X

Ltd. converted

1, 000, 12 %

debentures of Rs

100

each issued at a discount of Rs

10

per debenture into equity shares of Rs

100

each Rs

90

paid up.

Q. X Ltd. offered 6,00,000 equity shares of 10 each Rs 8 called up. The public applied of 5,00,000 shares, all money was duly received except from Mr. X who holds 4,000 shares has not paid any thing after application money of Rs 2 per share and from Mr. Y who hods 1000 shares has paid only Rs 6 per share. X's shares were forfeited. The amount of subscribed capital to be disclosed in the Balance Sheet is _________.

Q. Garima Ltd. forfeited 1,600 equity shares of Rs. 10 each for the non-payment of first and final call of Rs. 2 per share. The forfeited shares were reissued at Rs. 12 per share as fully paid-up.

Q. X Ltd. decides to redeem 650, 15% Pref. Shares of Rs. 100 each at 10% premium. It has a General Reserve of Rs. 45,500 and a Securities Premium of Rs. 1,000. If the new equity shares are to be issued at 20% discount, the minimum number of equity shares of Rs 10 each to be issued for the purpose of redemption is ___________.

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Sudha Ltd. has sold 1 lakh equity shares of Rs. 10 each at Rs. 12 per share to an investment banker, who offered them to the public at Rs. 20 each. Identify the method of flotation.

Offer for sale.

Sudha Ltd. has sold $1$ lakh equity shares of Rs. $10$ each at Rs. $12$ per share to an investment banker, who offered them to the public at Rs. $20$ each. Identify the method of flotation.