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(i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.?
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(i) During the year 2017-18, X Ltd. issued bonus shares in the ratio o...
Issue of Bonus Shares:
- X Ltd. issued bonus shares in the ratio of 2:1 during the year 2017-18 by capitalizing reserves. This means that for every 2 existing shares, shareholders received 1 bonus share without any additional payment.
- By issuing bonus shares, the company is able to increase its share capital without affecting its cash position. It is a way of rewarding shareholders and increasing the liquidity of the company's shares in the market.
Redemption and Issuance of Debentures:
- On 1st July 2017, X Ltd. redeemed its 12% Debentures and issued new 10% Debentures at a discount of 5%.
- Redemption of debentures involves paying back the principal amount to debenture holders, while issuance of new debentures at a discount means that they are issued at a price lower than their face value.
- This helps the company save on interest costs in the long run, as it is now paying a lower interest rate on the new debentures.
Payment of Proposed Dividend:
- The proposed dividend on equity share capital for the previous year ended 31st March 2017 was paid out at a rate of 8%.
- Paying dividends is a way for companies to distribute profits to their shareholders. It is usually expressed as a percentage of the face value of the shares held by the shareholder.
Interest Paid on Bank Overdraft:
- X Ltd. paid ₹10,000 as interest on its bank overdraft.
- Bank overdraft is a short-term financing option where a company withdraws more money from its bank account than it has in the account.
- Paying interest on the overdraft is a cost to the company, but it provides flexibility in managing its cash flow and working capital requirements.
- X Ltd. issued bonus shares in the ratio of 2:1 during the year 2017-18 by capitalizing reserves. This means that for every 2 existing shares, shareholders received 1 bonus share without any additional payment.
- By issuing bonus shares, the company is able to increase its share capital without affecting its cash position. It is a way of rewarding shareholders and increasing the liquidity of the company's shares in the market.
Redemption and Issuance of Debentures:
- On 1st July 2017, X Ltd. redeemed its 12% Debentures and issued new 10% Debentures at a discount of 5%.
- Redemption of debentures involves paying back the principal amount to debenture holders, while issuance of new debentures at a discount means that they are issued at a price lower than their face value.
- This helps the company save on interest costs in the long run, as it is now paying a lower interest rate on the new debentures.
Payment of Proposed Dividend:
- The proposed dividend on equity share capital for the previous year ended 31st March 2017 was paid out at a rate of 8%.
- Paying dividends is a way for companies to distribute profits to their shareholders. It is usually expressed as a percentage of the face value of the shares held by the shareholder.
Interest Paid on Bank Overdraft:
- X Ltd. paid ₹10,000 as interest on its bank overdraft.
- Bank overdraft is a short-term financing option where a company withdraws more money from its bank account than it has in the account.
- Paying interest on the overdraft is a cost to the company, but it provides flexibility in managing its cash flow and working capital requirements.
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(i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.?
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(i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about (i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.?.
(i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about (i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.?.
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(i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.?, a detailed solution for (i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.? has been provided alongside types of (i) During the year 2017-18, X Ltd. issued bonus shares in the ratio of 2: 1 by capitalising reserve. (ii) 12% Debentures were redeemed on 1st July 2017 and new 10% Debentures were issued on the same date at a discount of 5%. (iii) Proposed Dividend on equity share capital for previous year ended 31st March 2017 was paid @ 8%. (iv) Interest paid on Bank Overdraft ₹10,000.? theory, EduRev gives you an
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