Please tell me if i want to calculate book value of equity share of a company and company have preference share holder also who will be redeemed on premium of Rs.450/- over and above face value then i will have to deduct face value plus premium value from assets? i think book value of all assets - (fictitious assets + all liability + preference share holder value inclusive premium) am i right?
11 October 2011
You are right as Premium on redemption of Preference share is also fictitious asset and will also be deducted, no need to mention it as seperate item
11 October 2011
friend I am not talking about fictitious assets actually i want to know whether premium which is payable at the time of redemption on preference share holder is also deductible for calculation of book value of equity share?
11 October 2011
You are right. Total Asset - Liabilities other than equity and R&S. otherwise, Total Asset excluding fictitious asset - Liabilities other than equity and R&S.