Question

X Ltd. Whose issued share capital on 31 March 2013 consisted of 24,000,10% Preference
shares of Rs.100 each fully paid up and 60,000 Equity share of Rs.100 each, Rs. 90 paid
up, decided to redeem preference shares at a premium of Rs.10 per share The company's
balance sheet as on 31-3-2013 showed a general reserve of Rs.28,00,000. The redemption
was effected partly out of the proceeds of a new issue of 12,000 equity shares of Rs.100
each at a premium of Rs.35 per share .The premium payable on the redemption was met
out of the premium received on the new issue .
On 1 July 2013, the company at its general meeting resolved that the reserves be applied
in the following manner:
1. the declaration of bonous at the rate of rs 10 per share on the equity share for the purpose of making the said equity share fully paid
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Answer 1

Answer:

XYZ Ltd is a limited company registered under the Indian Companies Act 2013. Since the company has been incurring losses over the past few years and the future for the company also appears bleak, the shareholders have resolved to wind up the company. As on the relevant date for settlement of dues on account of winding up, the following information is available: Realizable value of its assets (net of current liabilities): INR 50 million Long term debt: INR 55 million Fully paid preference capital: INR 7.50 million. Fully paid equity capital: INR 50 million The amount that would be allocated to the long term lenders against their lending of INR 55 million on settlement of liquidation dues and distribution of resources would be (in million INR):