Question

Y Ltd. has 8,000 equity shares of 100 each fully paid. Each share is sub-divided into 10
equity shares of' 10 each. The number of shares after sub-division will be...........​

Answer 1

Given: Y Ltd. has 8,000 equity shares of 100 each fully paid.

To find: The number of shares after sub-division

Explanation:

No. of equity shares held in the beginning = 8000

Amount of each equity share (beginning)= Rs.100

Therefore,

Total capital = 8000 × 100 = 800000

New price of each equity share will be Rs. 10

New equity capital will remain same = 800000

Hence, new no. of shares = $\frac{800000}{10}$ = 80000