Question

3. The Micro Corporation Ltd. is authorized to issue 1,00,000 shares of equity shares. It had issue
30,000 shares. It has bought back 5,000 shares. As a result of these transactions, The no.
shares (i) in authorized share capital and (ii) in issued share capital will be
(a) 1,00,000; 25,000
(b) 75,000; 25,000
(c) 1,00,000; 30,000
(d) 75,000; 30,000
​

Answer 1

Answer:

option a is correct

Explanation:

buy back of equity share only reduces the issued capital. authorised capital is the max no of shares a company can issue.