Question

XYZ Ltd. had on 31st December, 2017; 80,000 equity shares at Rs 10 each. It was decided to reduce shares to Rs 8 each. The reduction is _____. ​

Answer 1

Answer:

160000

Explanation:

80000×10=800000

80000×8=640000

160000

Answer 2

Answer:

XYZ Ltd. had on 31st December, 2017; 80,000 equity shares at Rs. 10 each. It was decided to reduce shares to Rs. 8 each. The reduction is Rs.160000. ​

Explanation:

Given:

1. Total equity shares available = Rs.800000 (80000 x 10)
2. Reduced value of equity shares = Rs.640000 (80000 X Rs.8)
3. Total amount transferred to capital reduction a/c = Rs.160000