Microsoft Ltd purchased 10 Laptops of Rs. 20000 for it's office use fr...
Details of the transaction:
- Microsoft Ltd purchased 10 laptops from Lenovo Ltd for office use.
- The cost of each laptop is Rs. 20,000.
- The payment for the laptops was made through the issuance of equity shares of Rs. 10 each.
Issuance of equity shares:
- Microsoft Ltd issued a total of 60,000 equity shares with a face value of Rs. 10 each.
- The shares were payable as follows:
- On Application: Rs. 2 per share
- On Allotment: Rs. 2 per share
- On First Call: Rs. 3 per share
- On Second Call: Rs. 3 per share
Application and allotment of shares:
- Microsoft Ltd received applications for 50,000 shares.
- All the applications were accepted, and shares were allotted to the applicants.
Explanation:
The transaction involved the purchase of laptops and the issuance of equity shares by Microsoft Ltd. Let's break down the process step by step:
1. Purchase of laptops:- Microsoft Ltd purchased 10 laptops from Lenovo Ltd for office use.
- The cost of each laptop is Rs. 20,000.
- The total cost of the laptops is 10 * Rs. 20,000 = Rs. 2,00,000.
2. Issuance of equity shares:- To make the payment for the laptops, Microsoft Ltd decided to issue equity shares.
- The face value of each share is Rs. 10.
- Microsoft Ltd issued a total of 60,000 equity shares.
3. Payment terms:- The payment for the equity shares was divided into four installments.
- On Application: Rs. 2 per share, totaling Rs. 2 * 60,000 = Rs. 1,20,000.
- On Allotment: Rs. 2 per share, totaling Rs. 2 * 60,000 = Rs. 1,20,000.
- On First Call: Rs. 3 per share, totaling Rs. 3 * 60,000 = Rs. 1,80,000.
- On Second Call: Rs. 3 per share, totaling Rs. 3 * 60,000 = Rs. 1,80,000.
4. Application and allotment:- Microsoft Ltd received applications for 50,000 shares.
- As all the applications were accepted, 50,000 shares were allotted to the applicants.
- The total amount received on application is 50,000 * Rs. 2 = Rs. 1,00,000.
5. Balance payment:- The balance amount to be paid by the shareholders is calculated as follows:
- On Allotment: Rs. 2 per share, totaling Rs. 2 * 50,000 = Rs. 1,00,000.
- On First Call: Rs. 3 per share, totaling Rs. 3 * 50,000 = Rs. 1,50,000.
- On Second Call: Rs. 3 per share, totaling Rs. 3 *