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On 2-3-15,50,000,10% debentures of ₹100 each are issued qt a discount of 5% on 10-3-15,80,000,6% preference shares of ₹100 each are redeemed at a premium of 10% along with one month dividend on 22-3-15 40,000 equity shares of ₹100 each are issued at premium of 15% on 28-2-15,bank balance on 31-3-15?
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On 2-3-15,50,000,10% debentures of ₹100 each are issued qt a discount ...
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  • On 2-3-15, 50,000 10% debentures of ₹100 each are issued at a discount of 5%.

  • On 10-3-15, 80,000 6% preference shares of ₹100 each are redeemed at a premium of 10% along with one month dividend.

  • On 22-3-15, 40,000 equity shares of ₹100 each are issued at a premium of 15%.



Solution


  • The face value of each debenture is ₹100, and the company issued 50,000 debentures. So, the total value of the debentures issued is 50,000 x ₹100 = ₹50,00,000.

  • The debentures were issued at a discount of 5%, which means that the company received only 95% of the face value of the debentures. So, the company received 95% of ₹50,00,000 = ₹47,50,000.

  • The face value of each preference share is ₹100, and the company redeemed 80,000 preference shares. So, the total value of the preference shares redeemed is 80,000 x ₹100 = ₹80,00,000.

  • The preference shares were redeemed at a premium of 10%, which means that the company had to pay 110% of the face value of the preference shares. So, the company paid 110% of ₹80,00,000 = ₹88,00,000.

  • The company also paid one month dividend on the preference shares, which is 6% of ₹80,00,000 = ₹4,80,000.

  • The face value of each equity share is ₹100, and the company issued 40,000 equity shares at a premium of 15%. So, the company received 115% of the face value of each equity share. So, the company received 115% of ₹40,00,000 = ₹46,00,000.

  • The bank balance on 31-3-15 can be calculated as follows:



Calculation


  • Total inflow of funds = ₹47,50,000 (from debentures) + ₹88,00,000 (from preference shares) + ₹4,80,000 (dividend on preference shares) + ₹46,00,000 (from equity shares) = ₹1,86,30,000

  • Total outflow of funds = 0 (no expenses or payments mentioned in the question)

  • Bank balance on 31-3-15 = Total inflow of funds - Total outflow of funds = ₹1,86,30,000 - 0 = ₹1,86,30,000



Conclusion

Therefore, the bank balance on 31-3-15 is ₹1,86,30,000.
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On 2-3-15,50,000,10% debentures of ₹100 each are issued qt a discount of 5% on 10-3-15,80,000,6% preference shares of ₹100 each are redeemed at a premium of 10% along with one month dividend on 22-3-15 40,000 equity shares of ₹100 each are issued at premium of 15% on 28-2-15,bank balance on 31-3-15?
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On 2-3-15,50,000,10% debentures of ₹100 each are issued qt a discount of 5% on 10-3-15,80,000,6% preference shares of ₹100 each are redeemed at a premium of 10% along with one month dividend on 22-3-15 40,000 equity shares of ₹100 each are issued at premium of 15% on 28-2-15,bank balance on 31-3-15? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On 2-3-15,50,000,10% debentures of ₹100 each are issued qt a discount of 5% on 10-3-15,80,000,6% preference shares of ₹100 each are redeemed at a premium of 10% along with one month dividend on 22-3-15 40,000 equity shares of ₹100 each are issued at premium of 15% on 28-2-15,bank balance on 31-3-15? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 2-3-15,50,000,10% debentures of ₹100 each are issued qt a discount of 5% on 10-3-15,80,000,6% preference shares of ₹100 each are redeemed at a premium of 10% along with one month dividend on 22-3-15 40,000 equity shares of ₹100 each are issued at premium of 15% on 28-2-15,bank balance on 31-3-15?.
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