Page 305 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

Notes Plant & Machinery (revalued) 2,50,000
Furniture at book value 4,500

Stock (revalued) 3,00,000
Debtors at book value 2,02,500
Cash 7,500
Prepaid Expenses 3,000
Gross Total Assets 9,77,500
Less: External Liabilities: ` `

Provident fund 45,000
Creditors 60,000
Outstanding Expenses 7,500
Bonus Claim to pay 12,000 1,24,500

Net Assets: 8,53,000
Condition A:

Net Assets calculated as above 8,53,000

×
Less: Capitalised value for Preference Share Capital = 1,50,000 8 2,40,000
5
Net assets available for both type of equity shares 6,13,000
Paid up capital ratio of equity shares = ` 3,00,000 : ` 150,000 or 2 : 1

Rs.6,13,000 2
Net Assets for equity shares of ` 10 each = × = ` 4,08,667
3
4,08,667
Value per equity share of ` 10 paid up = = ` 13.62
30,000

Rs.6,13,000 2
Net Assets for equity shares of ` 5 paid up = × =2,04,333
3
2,04,333
Value per equity share of ` 5 paid up = = ` 6.8
30,000

2,40,000
Value per preference share = = ` 6
15,000
Condition B:

In this case the entire net assets will be divided in the ratio of paid up capital i.e., 2:1:1

2
Net assets for the equity shares of ` 10 each = ` 8,53,000 × = ` 4,26,500
4

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