Following figures have been extracted from the books of ABC Ltd. as at 31-3. 2016 : $ Authorised Capital : 50,00,000 Equity Shares of $ 10 each Issued and Subscribed Capital : 45,00,000 Equity Shares of $ 10 each, fully paid up Reserves and Surplus: General Reseve Surplus Account Capital Reserves Securities Premium Reserve 14% Partly Convertible Debentures of $100 each 5,00,00,000 4,50,00,000 50,00,000 1,10,00,000 30,00,000 15,00,000 1,25,00,000 The company decided to capitalise its reserves by way of bonus issue at the rate of one share for every 4 shares held. Capital reserves include $ 20,00,000 profit on sale of fixed assets. It may be assumed that securities premium reserve has been realised in cash. 40% of 14% debentures are convertible into equity shares of $ 10 each fully paid on 30th September, 2016. Show the necessary Journal Entries in the books of the company and prepare the extract of the Balance Sheet immediately after the bonus issue but before conversion of debentures.

Following figures have been extracted from the books of ABC Ltd. as at 31-3. 2016 : $ Authorised Capital : 50,00,000 Equity Shares of $ 10 each Issued and Subscribed Capital : 45,00,000 Equity Shares of $ 10 each, fully paid up Reserves and Surplus: General Reseve Surplus Account Capital Reserves Securities Premium Reserve 14% Partly Convertible Debentures of $100 each 5,00,00,000 4,50,00,000 50,00,000 1,10,00,000 30,00,000 15,00,000 1,25,00,000 The company decided to capitalise its reserves by way of bonus issue at the rate of one share for every 4 shares held. Capital reserves include $ 20,00,000 profit on sale of fixed assets. It may be assumed that securities premium reserve has been realised in cash. 40% of 14% debentures are convertible into equity shares of $ 10 each fully paid on 30th September, 2016. Show the necessary Journal Entries in the books of the company and prepare the extract of the Balance Sheet immediately after the bonus issue but before conversion of debentures.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem: Earnings per Share. (Pls help and provide supporting computations)