Question

X Ltd. issued 1000 equity shares of Rs. 100 each at a discount of 10% ; the proceeds will be ​

Answer 1

Explanation:

it is your answer...............

Answer 2

The proceeds will be ₹90,000.

• Companies doesn't usually issue shares at discount, they either issue on premium or at par.
• To ensure a successful issue, the company usually appoints underwriters to buy their issue for less than 90% and underwriters charge the commission on the face value of shares for the same.
• For the issue of discount, we need to deduct the discount amount from the face value.

Calculation of the proceeds will be :

   1000 equity shares @ ₹90 (100-10) = ₹90,000.