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Redemption of debentures

Accountancy

Sir, I am getting 21000 equity shares after conversion....am I correct or wrong....

Star Ca

CA Inter

★ 3K+

06-Jan-22 10:22

509

Answers (10)

Please share your working

Sudha Reddy

CA Final

★ 20K+

06-Jan-22 10:39

Sudha Reddy

Please share your working

This is my working

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Thread Starter

Star Ca

CA Inter

★ 3K+

06-Jan-22 10:50

Thread Starter

Star Ca

This is my working

Debenture holders with 20000 agreed for conversion Conversion is 20% of holding so 20% of 20000 = 4000 equity shares issued

Sudha Reddy

CA Final

★ 20K+

06-Jan-22 11:01

But nominal value is 10â?¹

Thread Starter

Star Ca

CA Inter

★ 3K+

06-Jan-22 11:04

Read question carefully... conversion is 20% of holding not value

Sudha Reddy

CA Final

★ 20K+

06-Jan-22 11:18

Thread Starter

Star Ca

CA Inter

★ 3K+

06-Jan-22 11:19

20000Ã?20%= 4000 debentures 4000Ã?105= 420000 in value 420000/issue price of equity share 420000/20= 21000 equity shares I also took 20% of holdings only na....ie., 20%of debentures

Thread Starter

Star Ca

CA Inter

★ 3K+

06-Jan-22 11:23

I got the same 21000

Murali Krishna

CA Inter

★ 300

06-Jan-22 11:27

Thread Starter

Star Ca

20000Ã?20%= 4000 debentures 4000Ã?105= 420000 in value 420000/issue price of equity share 420000/20= 21000 equity shares I also took 20% of holdings only na....ie., 20%of debentures

Yes, you are correct

Sudha Reddy

CA Final

★ 20K+

06-Jan-22 11:31

Thank you

Thread Starter

Star Ca

CA Inter

★ 3K+

06-Jan-22 11:31