accounts P3

[hardik]

a company issues 3000 ordinary shares of 1 dollar at a premium of 0.50 to finance the redemption of 3750 preference shares at a premium of 0.20 . preference shares were originally issued at a premium of 0.10.

what was d increase in share premium account???????

 

[parthrocks]

The increase in the share premium account will be around
$1125???m i right?reply fast

 

[hardik]

How u got. Xplain

 

[shanky631]

How u got. Xplain

see first calculate the premium of the share issue of ordinary shares which is (3000 X 0.5)= 1500

now u have to deduct the share premium on redemption of preference shares at 0.2 premium, and it had been issued previously at 0.1 premium. so the balance remained 0.1 per perference share would have to be financed by the new issue which is (3750 X 0.1) = 375

now deduct the two values:- 1500-375=1125 increase

hope u got it, but still if any doubt plz feel free to ask.

 

[parthrocks]

How u got. Xplain

I guess i am a bit late!!!ो
Anyways thanks for Sharing such sums!!!kidhar ka hai ye sum?????

 

[hardik]

May June 2006 p3.

 

[parthrocks]

Ohhh thanks bro yaya!!!i have to do that!!!