Question

X Ltd. decides to redeem 650, 15% Preference Shares of Rs. 100 each at 10% premium. It has a General reserve of 95,500 and Securities Premium of Rs. 1,000. If new Equity shares are to be issued at 25% premium and minimum General Reserve of Rs. 50,000 is to be kept, using
Algebric Equation method, calculate the minimum number of Equity shares of Rs. 10 each to be issued for the purpose of redemption and the amount required to be transferred to CRR. There also exists Loss on sale of Investments of Rs. 1,000 in the books.

Answer 1

Answer:

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