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In the cost of shares sold how do got 70000?

Adobe Scan 19 Apr 2021.pdf

Sandhya K

CA Inter

★ 5

19-Apr-21 19:14

555

Answers (4)

And how do we got the cost of 20,000 shares ( average cost basis)=2,61,429

Thread Starter

Sandhya K

CA Inter

★ 5

19-Apr-21 19:21

It's written, Singh purchased 5,000 more equity shares in the company at a premium of Rs.4 per share. We are given nominal value is Rs.10 per share, so purchase price becomes Rs.14. 5,000 X Rs.14 = Rs.70,000

Sahibdeep Singh

CA Inter

★ 14K+

19-Apr-21 21:59

Thread Starter

Sandhya K

And how do we got the cost of 20,000 shares ( average cost basis)=2,61,429

We calculated cost of 35,000 shares to be 4,57,500. So, that's the proportion for 20,000 shares

Sahibdeep Singh

CA Inter

★ 14K+

19-Apr-21 22:01

Tq u sir

Thread Starter

Sandhya K

CA Inter

★ 5

20-Apr-21 12:01