Q. A company has a paid up share capital of 3,20,000 divided into 40,000 Equity Shares of 10 each, 78 per share paid up. The profit and Loss Account shows a credit balance of 1,40,000. The company decides to reduce the paid up share capital to 6 per share paid up by paying off the necessary amount out of accumulated profits. Give necessary journal entries.
Answers
Answer:
Share capital 40,000 Equity shares of Rs. 10/-each 4,00,000
Reserves and surpluses 2,50,000
Secured loan2,50,000
Other Liabilities 1,00,000
Explanation:
A subsidiary company is what the Companies Act of 1956, Section 4 defines. If and only if, a corporation is a subsidiary of another.
The first mentioned company is an existing company for which holders of Preference shares issued prior to the commencement of this Act have the same voting rights in all respects as holders of Equity shares, and for which the first mentioned company exercises or controls more than half of the total voting power of such company.
ii) Where the first firm stated is another company, the second company possesses more than half of the nominal value of its equity share capitals. OR iii) The accountancy is a subsidiary of any business that
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