Buy back of shares

Accountancy

Hari LTD wants to buy- back of 20 % of its equity shares @ ₹15 per share on 5.4.2023. The Company issued a 12 % preference share of 5 lakh ₹10 for each on the same date and also issued one fully paid up equity share ₹10 by way of the bonus share of every 2 equity shares held by the equity shareholders. Hari LtD provides the following details. On 31.3.2023 Equity share capital ( fully paid up shares of ₹10 each. = ₹500 crore. General Reserve = ₹50 crore Capital redemption reserve = ₹370 crore. You are required to compute the : 1.Total amount Of Capital redemption Reserve after bonus issue. 2.Share capital after buy-back. 3.Securities premium.

Rana Darshan

CA Final

★ 810

10-Dec-24 14:58

711

Answers (3)

what is your doubt here

CA Suraj Lakhotia

Admin

10-Dec-24 15:06

CA Suraj Lakhotia Admin

what is your doubt here

Capital redemption reserve

Thread Starter

Rana Darshan

CA Final

★ 810

10-Dec-24 16:27

Amount to be transferred to CRR = Total buy back value (500x20%) i.e 100 crores - 5 crores = 105 crores. Amount required for bonus issue = 400 crores. CCRR balance = 370+105-400

CA Suraj Lakhotia

Admin

24-Dec-24 17:09