Page 290 - Corporate Finance PDF Final new link

NPP

290 Corporate Finance BRILLIANT’S

Bonus basis 1 : 6 (Date 16.8.2016); Rights basis 3 : 7 (Date 31.8.2016); Price ` 15 per share.
Due Date for payment 30.9.2016.
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Shareholders can transfer their rights in full or in part. Accordingly, Sundar sold 33 % of
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his entitlement to Shekhar for a consideration of ` 2 per share.
Dividends: Dividends for the year ended 31.3.2016 at the rate of 20% were declared by WMB
Ltd. and received by Sundar on 31.10.2016. Dividends for shares acquired by him on 20.6.2016 are
to be adjusted against the cost of purchase.
On 15.11.2016, Sundar sold 25,000 equity shares at a premium of ` 5 per share.
You are required to prepare in the books of Sundar: (i) Investment Account and (ii) Profit and
Loss Account.
For your exercise, assume that the books are closed on 31.12.2016 and shares are valued at
average cost.
1.4. 2016 H$mo gw§Xa Ho$ nmg < 15 à{V eo¶a (’o$g d¡ë¶y < 10) H$s ~wH$ d¡ë¶y na WMB {b{‘Q>oS> Ho$ 25,000
B{³dQ>r eo¶g© Wo& 26.6.2016 H$mo CgZo < 16 à{V eo¶a na H§$nZr Ho$ Aݶ 5,000 eo¶g© IarXo& WMB {b{‘Q>oS>
Ho$ S>m¶ao³Q>g© Zo ~moZg VWm amBQ²>g Bí¶y H$s KmofUm H$s& BZ Bí¶y na {H$gr ^r {S>{dS>|S> H$m ^wJVmZ Zht H$aZm Wm& Bí¶y
H$s eV] {ZåZ{b{IV h¢…
eo¶ahmoëS>g© nyU© ¶m Am§{eH$ ê$n ‘| CZHo$ amBQ²>g H$mo ñWmZm§V[aV H$a gH$Vo h¢& BgHo$ AZwgma gw§Xa Zo < 2 à{V

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eo¶a Ho$ H§${gS>aoeZ Ho$ {bE eoIa H$mo CgHo$ E§Q>mBQ>b‘|Q> H$m 33 % ~oMm&
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{S>{dS>|S²>g… 31.3.2016 H$mo g‘má hþE df© Ho$ {bE WMB {b{‘Q>oS> Ûmam 20% H$s Xa na {S>{dS>|S²>g H$s KmofUm H$s
Wr VWm 31.10.2016 H$mo gw§Xa Ûmam àmá {H$¶m J¶m Wm& 20.6.2016 H$mo CgHo$ Ûmam n«má eo¶g© Ho$ {bE {S>{dS>|S²>g H$mo
H«$¶ bmJV Ho$ {déÕ g‘m¶mo{OV {H$¶m OmZm h¡&
15.11.2016 H$mo gw§Xa Zo < 5 à{V eo¶a Ho$ EH$ àr{‘¶‘ na 25,000 B{³dQ>r eo¶g© ~oMo&
AmnH$mo gw§Xa H$s ~w³g ‘| V¡¶ma H$aZm h¡…
(i) B§doñQ>‘|Q> AH$mC§Q> VWm
(ii) bm^ VWm hm{Z ImVm
AmnHo$ Aä¶mg Ho$ {bE ‘mZm J¶m h¡ {H$ ~w³g 31.12.2016 H$mo ~§X hþB© h¢ VWm eo¶g© H$m Am¡gV bmJV na ‘yë¶
bJm¶m J¶m h¡&
Solution:
In the Books of Sundar
Dr. Investment in Equity Shares of WMB Ltd. Cr.
Date Particulars No. Divi- Cost Date Particulars No. Divi- Cost
dend (`) dend (`)
1.4.16 To Bal. b/d 25,000 - 3,75,000 31.10.16 By Bank A/c
20.6.16 To Bank A/c 5,000 - 80,000 (WN5) - 50,000 10,000
16.8.16 To Bonus 15.11.16 By Bank (Sale
Issue 5,000 - - of Shares) 25,000 - 3,75,000