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Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares?
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Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% ...
Calculation:
Given data:
- Number of preference shares to be redeemed = 10,000
- Face value of preference shares = Rs.10
- Premium on redemption = 10%
Step 1: Calculate the total amount to be paid for redemption
Total amount to be paid for redemption = Face value + Premium on redemption
= 10,000 shares * Rs.10 * (1 + 10%)
= 10,000 shares * Rs.10 * 1.1
= Rs.1,10,000
Step 2: Calculate the amount available for redemption
Amount available for redemption = Balance in profit and loss a/c + Balance in securities premium a/c
= Rs.65,000 + Rs.5,000
= Rs.70,000
Step 3: Calculate the amount to be raised through equity shares
Amount to be raised through equity shares = Total amount to be paid for redemption - Amount available for redemption
= Rs.1,10,000 - Rs.70,000
= Rs.40,000
Step 4: Calculate the number of equity shares to be issued
Number of equity shares to be issued = Amount to be raised through equity shares / Face value of equity shares
= Rs.40,000 / Rs.10
= 4,000 shares
Conclusion:
The minimum number of equity shares of Rs.10 each to be issued for the purpose of redemption is 4,000 shares.
None of the given options (A), (B), (C), or (D) matches the calculated result.
Given data:
- Number of preference shares to be redeemed = 10,000
- Face value of preference shares = Rs.10
- Premium on redemption = 10%
Step 1: Calculate the total amount to be paid for redemption
Total amount to be paid for redemption = Face value + Premium on redemption
= 10,000 shares * Rs.10 * (1 + 10%)
= 10,000 shares * Rs.10 * 1.1
= Rs.1,10,000
Step 2: Calculate the amount available for redemption
Amount available for redemption = Balance in profit and loss a/c + Balance in securities premium a/c
= Rs.65,000 + Rs.5,000
= Rs.70,000
Step 3: Calculate the amount to be raised through equity shares
Amount to be raised through equity shares = Total amount to be paid for redemption - Amount available for redemption
= Rs.1,10,000 - Rs.70,000
= Rs.40,000
Step 4: Calculate the number of equity shares to be issued
Number of equity shares to be issued = Amount to be raised through equity shares / Face value of equity shares
= Rs.40,000 / Rs.10
= 4,000 shares
Conclusion:
The minimum number of equity shares of Rs.10 each to be issued for the purpose of redemption is 4,000 shares.
None of the given options (A), (B), (C), or (D) matches the calculated result.
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Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares?
Question Description
Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares? 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 Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares?.
Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares? 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 Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares?.
Solutions for Ajay Ltd. decides to redeem 10000 preference shares of 10 each at 10% premium. Balance in profit and loss a/c is 65000 and in securities premium a/c is 5000. You are required to calculate the minimum number of equity share of 10 each to be issued for the purpose of redemption, if minimum equity share are to be re-issued it means maximum CRR is to be created ? (A) 13,125 shares (B) 5,625 shares (C) 13,750 shares (D) 5000 shares? in English & in Hindi are available as part of our courses for CA Foundation.
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