Aazad Ltd. has the following particulars: Particulars ₹ (lacs) 10% Preference Share Capital (10 each) 2,500 Equity Share Capital of 10 each 8,000…
CA Intermediate · Advanced Accounting · MTP · September 2024
Aazad Ltd. has the following particulars: Particulars ₹ (lacs) 10% Preference Share Capital (10 each) 2,500 Equity Share Capital of 10 each 8,000 Capital Redemption Reserve 1,000 Securities Premium 800 General Reserve 6,000 Profit & Loss A/c 300 Cash 1,650 Investments (Market Value - 1,500 lacs) 3,000 The company decides to redeem all it's preference shares at a premium of 10% and buys back 25% of equity shares @15 per share. Investments amounting to Market Value of 1,000 lakhs sold at 3,000 lakhs and raises a bank loan of 2,000 lakhs. Answer the following questions based on above:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
1,000 lakhs Profit
Topics: Preparation of Financial Statements
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