18 August 2010
IF ANY PUBLIC LTD. LETS SAY HAVE AUTHORISED SHARE CAPITAL OF Rs.10,00,000 and THEY ALREADY ISSUED EQUITY SHARE CAPITAL OF Rs.8,00,000 with 80,000 of Rs.10 PER SHARE. AFTER 2 YEARS THEY WANT TO ISSUE MORE SHARES WITH Rs.36 per share i.e.3.6 times MORE THAN FACE VALUE PRICE. MY QUERY IS THIS DIFF.i.e. Rs.26 will be treated as PREMIUM AND WHAT WILL BE THE COMPOSITION OF BALANCE SHEET AFTERWARDS. will the face value in balance sheet remain at Rs.10 per share or Rs.36 per share.
18 August 2010
Share capital under paid up capital will be credited by Rs. 10 the face value and securities premium under reserves & surplus will be credit by Rs. 26 per share.
18 August 2010
AGREED WITH EXPERTS. AMOUNT IN EXCESS OF FACE VALUE OF SHARE WILL BE TREATED AS SHARE PREMIUM. IT WILL BE SHOWN IN SEPRATE ACCOUNT "SHARE PREMIUM A/C"
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