Page 109 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes and all the investments for 2,60,000. On 31st May 2006, all payments were made on
redemption, except to the holders of 200 shares who could not be traced.

On 30th June, 2006, the directors issued fully paid bonus shares to the then
shareholders at the rate 3 for 5 held at a premium of 5%.

You are required to give necessary journal entries in the books of the company to
record the above transactions.

Answers: Self Assessment

1. Buy back 2. Hybrid

3. Capital Redemption Reserve 4. True
5. True 6. Banks/Financial Institutions
7. Articles of Association 8. SEBI.
9. escrow account 10. True

11. False 12. True
13. Bonus 14. Shareholders
15. cash

4.8 Further Readings

Books Corporate Accounting - Dr. K.K. Verma

Online links http://moneyterms.co.uk/rights-issue/
http://investmentarticle.com/why-do-companies-conduct-rights-issue.html

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